{"id":45890,"date":"2025-07-10T17:27:01","date_gmt":"2025-07-10T14:27:01","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=45890"},"modified":"2025-07-10T17:27:50","modified_gmt":"2025-07-10T14:27:50","slug":"fed-official-musalem-there-are-upside-risks-to-inflation","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/fed-official-musalem-there-are-upside-risks-to-inflation\/","title":{"rendered":"Fed Official Musalem: &#8220;There Are Upside Risks to Inflation&#8221;"},"content":{"rendered":"<p data-start=\"175\" data-end=\"531\"><strong>Alberto Musalem<\/strong>, President of the <strong data-start=\"209\" data-end=\"238\">St. Louis <a href=\"https:\/\/coinengineer.net\/blog\/fed-minutes-released-here-are-the-key-takeaways\/\">Federal Reserve<\/a><\/strong> and a voting member of the <strong>U.S. central bank<\/strong>, shared important insights regarding both the <strong data-start=\"330\" data-end=\"350\">economic outlook<\/strong> and <strong data-start=\"355\" data-end=\"381\">inflation expectations<\/strong>. According to Musalem, the U.S. economy is currently at or near <strong data-start=\"446\" data-end=\"465\">full employment<\/strong>, but he warned that upside risks to <strong data-start=\"502\" data-end=\"515\">inflation<\/strong> remain present.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/fed-official-musalem-there-are-upside-risks-to-inflation\/#Feds_Musalem_Strong_Economy_Tight_Labor_Market\" title=\"Fed\u2019s Musalem: Strong Economy, Tight Labor Market\">Fed\u2019s Musalem: Strong Economy, Tight Labor Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/fed-official-musalem-there-are-upside-risks-to-inflation\/#Monetary_Policy_Is_Moderately_Restrictive\" title=\"Monetary Policy Is Moderately Restrictive\">Monetary Policy Is Moderately Restrictive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/fed-official-musalem-there-are-upside-risks-to-inflation\/#Inflation_Temporary_or_Persistent\" title=\"Inflation: Temporary or Persistent?\">Inflation: Temporary or Persistent?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/coinengineer.net\/blog\/fed-official-musalem-there-are-upside-risks-to-inflation\/#Inflation_Expectations_Remain_Anchored\" title=\"Inflation Expectations Remain Anchored\">Inflation Expectations Remain Anchored<\/a><\/li><\/ul><\/nav><\/div>\n<h3 data-start=\"533\" data-end=\"586\"><span class=\"ez-toc-section\" id=\"Feds_Musalem_Strong_Economy_Tight_Labor_Market\"><\/span>Fed\u2019s Musalem: Strong Economy, Tight Labor Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"588\" data-end=\"867\">Musalem stated that the U.S. economy is \u201cin a good place.\u201d Unemployment remains low, and companies are still hesitant to lay off workers. However, hiring activity appears weaker than in previous periods. Slower immigration rates may be contributing to a reduced <strong data-start=\"850\" data-end=\"866\">labor supply<\/strong>.<\/p>\n<h3 data-start=\"869\" data-end=\"914\"><span class=\"ez-toc-section\" id=\"Monetary_Policy_Is_Moderately_Restrictive\"><\/span>Monetary Policy Is Moderately Restrictive<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"916\" data-end=\"1188\">Assessing the Fed\u2019s current stance, Musalem described <strong data-start=\"970\" data-end=\"989\">monetary policy<\/strong> as \u201cmoderately restrictive.\u201d This suggests that <strong data-start=\"1038\" data-end=\"1056\">interest rates<\/strong> are still high enough to constrain growth. Nevertheless, <strong data-start=\"1114\" data-end=\"1138\">financial conditions<\/strong> continue to support economic expansion, he noted.<\/p>\n<h3 data-start=\"1190\" data-end=\"1229\"><span class=\"ez-toc-section\" id=\"Inflation_Temporary_or_Persistent\"><\/span>Inflation: Temporary or Persistent?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1231\" data-end=\"1495\">On the inflation front, Musalem struck a cautiously optimistic tone. While inflation has shown favorable trends over the past three months, he emphasized that <strong data-start=\"1390\" data-end=\"1401\">tariffs<\/strong> and a weakening <strong data-start=\"1418\" data-end=\"1433\">U.S. dollar<\/strong> could add new upward pressure to prices in the coming months.<\/p>\n<p data-start=\"1497\" data-end=\"1796\">The full impact of incoming tariff measures may not be felt until the end of this year or the beginning of next year, he said. Musalem added that the effect could vary across different layers of the <strong data-start=\"1696\" data-end=\"1712\">supply chain<\/strong>, and it\u2019s still too early to say whether the impact will be one-time or persistent.<\/p>\n<h3 data-start=\"1798\" data-end=\"1840\"><span class=\"ez-toc-section\" id=\"Inflation_Expectations_Remain_Anchored\"><\/span>Inflation Expectations Remain Anchored<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1842\" data-end=\"2057\">Despite these risks, <strong data-start=\"1863\" data-end=\"1889\">inflation expectations<\/strong>\u2014a key metric for the Fed\u2014remain stable. Musalem underlined that long-term expectations are \u201canchored,\u201d and that the central bank is committed to keeping them that way<\/p>\n<hr \/>\n<p data-start=\"1842\" data-end=\"2057\"><em>Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don\u2019t forget to follow us on\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Telegram<\/strong><\/a>,\u00a0<a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>YouTube<\/strong><\/a>\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\"><strong>Twitter<\/strong><\/a>\u00a0for the latest news and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alberto Musalem, President of the St. Louis Federal Reserve and a voting member of the U.S. central bank, shared important insights regarding both the economic outlook and inflation expectations. According to Musalem, the U.S. economy is currently at or near full employment, but he warned that upside risks to inflation remain present. Fed\u2019s Musalem: Strong<\/p>\n","protected":false},"author":29,"featured_media":31793,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,2],"tags":[7352,643,1180,15477,20382,2302,2297,8132,20381,20383],"class_list":["post-45890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-news","category-news","tag-alberto-musalem","tag-economy","tag-inflation","tag-inflation-expectations","tag-labor-supply","tag-monetary-policy","tag-powell","tag-rate-cut","tag-st-louis-federal-reserve","tag-u-s-central-bank"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fed Official Musalem: &quot;There Are Upside Risks to Inflation&quot; - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/fed-official-musalem-there-are-upside-risks-to-inflation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fed Official Musalem: &quot;There Are Upside Risks to Inflation&quot; - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Alberto Musalem, President of the St. Louis Federal Reserve and a voting member of the U.S. central bank, shared important insights regarding both the economic outlook and inflation expectations. 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