Inflation and Tariff Impacts Discussed by Fed's Musalem

In a revealing CNBC interview, Federal Reserve Bank of St. Louis President Alberto Musalem shared insights into the current economic landscape, noting that inflation hovers around 3%. While tariffs are adding to price pressures, Musalem is optimistic about their diminishing impact within 6 to 9 months, though he cautions that effects could linger longer.

Economic Indicators Show Mixed Signals

Musalem pointed to signs of economic "weakening", such as subdued payroll growth and significant data revisions. Despite a cooling in labor demand, a parallel decline in supply has kept the job market steady, near full employment. He firmly stated that the current economic conditions do not justify a half-point rate cut.