Fed’s Musalem Says Risks Are Shifting More Toward Inflation

Federal Reserve Bank of St. Louis President Alberto Musalem said there is much uncertainty over the future path for the economy and monetary policy, but he sees risks rising more for inflation than for employment.

“Inflation is running meaningfully above our target of 2%,” Musalem said Wednesday during an event in Fairhope, Alabama, organized by the Mississippi Bankers Association. “We have risks both on the employment side and on the inflation side. In my understanding, the risks have been shifting towards more risk on the inflation side than the employment side.”

Musalem said the Fed’s benchmark ...