Federal Reserve (Fed) Bank of St Louis Alberto Musalem hit newswires on Monday, admitting that signs of economic deterioration are beginning to show through the cracks, but that overall growth and labor figures still look good, at least for the time being.
Key highlights
Signs inflation expectations unanchoring would concern me.
Recent data suggest downside risk to economic growth.
Long-term inflation expectations are broadly anchored.
More monetary policy work required for price stability.
Economic growth outlook looks good and job market is healthy.
Outlook is for continued solid economic growth, but recent consumer and housing data pose some downside risk.
Patient approach to policy will help achieve Fed’s goals and sustain economic growth.
Restrictive monetary policy still needed to ensure inflation returns to 2% target.
It’s hard to separate weather and confidence from January spending.
I see the labor market as at, or around, full employment.
There are good reasons to think that productivity growth is persistent.
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