Federal Reserve's Moussali: Current interest rate setting remains appropriate

MeNews · 2026-04-08T09:13:42+00:00

ME News Report, April 1 (UTC+8): St. Louis Fed President James Bullard said on Wednesday that the Federal Reserve's current interest rate stance may remain appropriate in the foreseeable future, and he might support the next move to cut or raise rates depending on economic developments. Bullard stated that the Fed's target rate of 3.5%-3.75% strikes a good balance when facing risks such as persistent inflation and signs of fragility in the labor market in recent months. This rate target may be on the lower end of the neutral zone, indicating that further rate cuts could unintentionally boost inflation. Bullard noted, "Policy can effectively address the risks of the dual mandate, and I expect the current policy rate level will remain appropriate for some time." He added that if the labor market weakens and rate cuts do not undermine the Fed's credibility in fighting inflation, he might ultimately support further easing. However, he also stated that if inflation rises, or

MeNews

2026-04-08 09:13:42

ME News update, on April 1 (UTC+8), St. Louis Fed President Musalem said on Wednesday that the Federal Reserve’s current interest rate stance is likely still appropriate for the foreseeable future, and he may support the next rate cut or rate hike depending on how the economy evolves. Musalem said the Fed’s interest rate target of 3.5%-3.75% is a better balance when facing risks such as persistent inflation and signs of vulnerability in the labor market that have emerged in recent months. The interest rate target may be at the lower end of the neutral range, which suggests that if the Fed were to cut rates further, it could inadvertently raise inflation. Musalem noted, “Policy can effectively address the risks of the dual mandate. I expect the current policy rate level to remain applicable for some time.” He said that if the labor market weakens and further rate cuts would not damage the Fed’s credibility in fighting inflation, he ultimately may support additional rate cuts. But he also said that if inflation rises, or if the public loses confidence in the Fed’s ability to respond to inflation, he may support a rate hike. (Jin10) (Source: ODAILY)

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