Fed’s Musalem: Easing bias no longer fits the economy
The St. Louis Federal Reserve (Fed) President Alberto Musalem said that an easing bias in the Federal Reserve’s monetary policy statement is “no longer consistent” in an interview with Bloomberg TV.
Musalem added that a move in interest rates would depend on what happens in the economy, noting that bond markets “are seeing a resilient economy,” which could trigger a jump in inflation. He added that the movement in the fixed income is that investors are expecting a higher neutral rate.
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