Fed Should Gradually Cut Interest Rates, Musalem Says

St. Louis Federal Reserve Bank President Alberto Musalem expressed on Friday that the U.S. central bank should implement gradual interest rate cuts. He noted that the recent half-point interest rate reduction conveyed a “strong and clear message,” which he fully supports.

Musalem emphasized the importance of easing monetary policy, stating, “For me, it’s about easing off the brake at this stage. It’s about making policy gradually less restrictive.” He mentioned that if the economy or labor market deteriorates more than anticipated, a quicker pace of rate reductions might become necessary.