Inflation will move toward 2% target, but risks to outlook are rising, says Fed's Musalem

Published On Mar 3, 2025, 1:55 PM

Alberto Musalem, President of the Federal Reserve Bank of St. Louis, stated that while inflation is expected to gradually approach the Fed's target of 2%, there are rising risks that inflation could increase due to heightened near-term inflation expectations. His comments come amidst concerns over tariffs on imports, which could lead to higher prices and complicate the Fed's ability to cut interest rates in the future. He noted that both businesses and consumers are becoming more sensitive to potential inflation, indicating that risk is skewed upwards.