Fed’s Musalem Says Current Rate Likely to Remain Appropriate (2)

Federal Reserve Bank of St. Louis President Alberto Musalem said risks are rising to both inflation and employment, and officials should be prepared to adjust interest rates in either direction depending on how the economy evolves.

“Policy is well positioned to address risks to both dual mandate objectives, and I expect the current setting of the policy rate will remain appropriate for some time,” Musalem said Wednesday at the American Enterprise Institute in Washington. “However, I will support adjustments in the stance of policy if the evidence indicates the economy requires them.”

Fed officials are evaluating how a surge in ...