Fed's Musalem: Fed policy should prioritize price stability

Source Fxstreet

Federal Reserve (Fed) Bank of St Louis President Alberto Musalem added his voice to the chorus of Fedspeakers warning that US trade policy under the guidance of the Trump administration is poised to not only weigh on growth, but could also exacerbate price volatility, one of the Fed's favorite stand-in phrases for inflation.

Key highlights

Monetary policy currently well-positioned.

A balanced response to higher inflation and unemployment is feasible if inflation expectations stay anchored.

If inflation expectations become de-anchored, Fed policy should prioritize price stability.

US economy has underlying strength, labor market stable, inflation has eased but above 2% goal.

Economic policy uncertainty is unusually high.

Even after May 12th de-escalation, tariffs likely to lead to labor market softening and higher prices.

Tariffs as likely to have temporary as persistent effect on inflation.

If trade tensions are durably de-escalated, inflation could head back to target, labor market remain resilient, and current monetary policy would remain appropriate.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold price seems vulnerable above $3,200 amid possible Russia-Ukraine ceasefireGold price meets with a fresh supply during the Asian session on Tuesday and reverses the previous day's move higher on the back of the upbeat market mood.
Author  FXStreet
15 hours ago
Gold price meets with a fresh supply during the Asian session on Tuesday and reverses the previous day's move higher on the back of the upbeat market mood.
placeholder
Bitcoin’s Fate May Be Sealed On June 9, Analyst WarnsBitcoin spent the European trading hours changing hands near $103,000 after Sunday night’s failed attempt to clear $107,100. The pull-back has done little to dent the conviction of market
Author  NewsBTC
15 hours ago
Bitcoin spent the European trading hours changing hands near $103,000 after Sunday night’s failed attempt to clear $107,100. The pull-back has done little to dent the conviction of market
placeholder
Solana (SOL) Holds Ground in Tight Range — Traders Watch for Directional CueSolana started a fresh increase from the $160 zone. SOL price is now consolidating gains and might aim for more gains above the $172 zone. SOL price started a fresh increase above the $165 level
Author  NewsBTC
15 hours ago
Solana started a fresh increase from the $160 zone. SOL price is now consolidating gains and might aim for more gains above the $172 zone. SOL price started a fresh increase above the $165 level
placeholder
EUR/USD Price Forecast: Tests descending channel’s upper boundary near 1.1250EUR/USD remains steady after registering more than 0.50% gains in the previous session, trading around 1.1240 during the Asian hours on Tuesday. On the daily chart, technical analysis indicates a bearish bias is in play, as the pair continues to trade lower within a descending channel pattern.
Author  FXStreet
15 hours ago
EUR/USD remains steady after registering more than 0.50% gains in the previous session, trading around 1.1240 during the Asian hours on Tuesday. On the daily chart, technical analysis indicates a bearish bias is in play, as the pair continues to trade lower within a descending channel pattern.
placeholder
US Dollar Index (DXY) consolidates around 100.35 area, close to over one-week lowThe US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, oscillates in a range around the 100.35 area through the Asian session on Tuesday and remains close to over a one-week low touched the previous day.
Author  FXStreet
15 hours ago
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, oscillates in a range around the 100.35 area through the Asian session on Tuesday and remains close to over a one-week low touched the previous day.
goTop
quote