Fed’s Musalem Says Could Support Another Cut, Policy Not Preset

Federal Reserve Bank of St. Louis President Alberto Musalem said he could support another interest-rate reduction to bolster a slowing labor market, but emphasized officials should make decisions meeting by meeting given economic uncertainty.

“I could support a path with an additional reduction in the policy rate if there are further risks to the labor market that emerge,” and if the risks for persistent inflation remain contained, Musalem said Friday during an event in Washington. “I do think we need to not be on a preset course.”

A sharp slowdown in hiring this year has raised ...