St. Louis Federal Reserve Bank President’s Remarks

(Reuters) – St. Louis Federal Reserve Bank President Alberto Musalem on Friday stated that the U.S. central bank should cut interest rates “gradually”. He referenced the “strong and clear message” conveyed by last week’s half-point rate cut, which he supported.

Musalem emphasized, “For me, it’s about easing off the brake at this stage. It’s about making policy gradually less restrictive,” in an interview with the Financial Times. He also noted that if the economy or labor market weakens more than anticipated, “a faster pace of rate reductions might be appropriate.”