Fed's Musalem Says He Could Support Another Rate Cut

Watch Fed's Musalem Says He Could Support Another Rate Cut - Bloomberg on Dailymotion

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00:00you get the last word today's the last day before the fed blackout period starts at midnight and we

00:05won't hear from you all for 10 days you're also a voter so how are you going to vote well

00:12so i could support a path with an additional reduction in the policy rate if there are

00:22further risks to the labor market that emerge and provided that inflation the risk to persistence

00:29of inflation above target is contained and provided inflation expectations are expected

00:35remain anchored so that's my kind of overall framework i i do think we need to not be on a

00:41preset course uh it's important that uh we follow a balanced approach that um that we tread with

00:51caution because i perceive limited space for easing before monetary policy could become overly

00:59accommodative and we haven't finished the job on inflation so it's important that while we're

01:04providing support to labor market that we continue to lean against any potential persistence in

01:09inflation whether that persistence comes from tariffs from lower supply of labor or lower labor

01:16supply growth from sticky services or for whatever other reason well trying to keep up with all this

01:23to make a decision depends on knowing what's happening in the economy normally i would ask you well what

01:29data would change your mind but we don't have any data you will get the consumer price index though

01:34so is there anything in that that you think would be enough of a surprise to have you lean one way or

01:42another uh i don't i don't make decisions based my own decisions based on any one data point

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