Fed's Musalem remarks on the US economy and tariffs🗽

Fed’s Musalem remarks

• Tariffs don’t appear to be passing through to services.

• Purchasing power is still an issue for many Americans.

• Tariffs will work through the economy into the middle of next year.

• Tariff impacts are still flowing into the economy.

• It’s premature to say what will come with FOMC meetings after October.

• We are in a particularly uncertain moment.

• I don’t make decisions based on one data point amid the broader shutdown.

• I see limited space before rate cuts would make policy accommodative.

• The Fed should not be on a preset course and should follow a balanced approach.

• I could support a path with another cut if more risks to jobs emerge and inflation remains contained.

Source: xStation5