Fed’s Musalem Says Rates Well Positioned for Two-Sided Risks (1)

Federal Reserve Bank of St. Louis President Alberto Musalem said inflation risks are moderating, and he expects prices to begin converging toward the central bank’s target later this year.

Musalem said monetary policy is well positioned after last year’s rate cuts to respond to risks to either price stability or employment. He said rates are now right around the neutral level that neither boosts nor slows the economy, and reiterated there is little need to lower rates further while inflation remains elevated.

“I expect inflation to resume its convergence toward our 2% target over the course of this year. Today’s ...