Federal Reserve's Musalem: Inflation Target Has Yet to Be Achieved

According to a report by Jinse Finance, Alberto Musalem, President of the Federal Reserve Bank of St. Louis, stated that he supports the Federal Reserve policymakers' decision last week to keep interest rates unchanged, adding that the Fed still falls short of achieving its inflation target. "The current economic conditions indicate that we have not yet reached our inflation goal," Musalem said at an event in Itta Bena, Mississippi, on Friday. He added, "We have no gap in our employment target," noting that the labor market is close to full employment. Last month, Musalem said he expected the inflationary effects related to tariffs to become apparent in the summer, but it is still too early to determine whether this impact will be sustained.