Musalem: Interest Rate Cuts Will Strengthen Employment

The Impact of Interest Rate Cuts on Employment

St. Louis Fed President Alberto Musalem stated on Thursday that he supports the Federal Reserve’s decision to lower interest rates to support the employment market.

Interest Rate Cuts and Inflation

Musalem emphasized that interest rate cuts are "appropriate" at this time, stating, "While inflation remains above our target, we must continue to be cautious; it is also important to provide assurance to the employment sector."

Status of Monetary Policy

Musalem noted that the state of monetary policy is "between slightly restrictive and neutral," and highlighted that financial conditions are progressing towards neutral. At the end of October, the Fed once again lowered the target policy rate by a quarter point to a range of %3.75 to %4, following the quarter-point cut in September.