Fed’s Musalem Says Time to Pause Rate Cuts May Be Near
- Says cutting too much a higher risk than easing too little
- St. Louis Fed chief says important to maintain policy options
This article is for subscribers only.
Federal Reserve Bank of St. Louis President Alberto Musalem said it may be appropriate to pause interest-rate cuts as soon as this month, emphasizing incoming data will guide his decision.
Musalem indicated Wednesday that he wants to keep all options open ahead of the Fed’s next meeting on Dec. 17-18. The St. Louis Fed chief said he’d likely favor lowering rates over time, but backed a patient approach, saying the risks of cutting borrowing costs too quickly are greater than those of easing too little.