Fed’s Musalem (more): tariffs to stay, balance sheet move independent of policy

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Fed’s Musalem: Tariffs likely to stay as balance sheet decision kept separate from policy

More from Federal Reserve Bank of St. Louis President Alberto Musalem.

  • Said the central bank’s outlook assumes current US tariffs will remain in place, and that the recent Fed balance sheet decision was made independently of monetary policy.
  • He added that there is a “promising debate” within the central bank over what rate the Fed should target in the future — a sign of ongoing internal discussion about how best to guide rates and manage liquidity conditions as balance sheet normalisation continues.

Earlier:

This article was written by Eamonn Sheridan at investinglive.com.