Speaking at an event today, St. Louis Fed President Alberto Musalem emphasized the importance of maintaining “policy optionality” as the central bank assesses the evolving economic environment.
He noted that the “time may be approaching to consider slowing the pace of interest rate reductions, or pausing” altogether to evaluate incoming data and the economic outlook more carefully.
BUT, Musalem refrained from committing to a specific timeline, saying, “It might be December, it might be January. Could be later.”
He highlighted the significance of upcoming economic reports, including inflation, retail sales, and the crucial November jobs data due on Friday, in shaping his stance ahead of the Fed’s next policy decision.
“I’m going to wait until I see that data, until I can be assured in which way I’m leaning,” he stated.
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