St. Louis Fed President Alberto Musalem stated on October 30 that the central bank will need to raise interest rates again soon to combat inflation. He argued that implementing incremental hikes sooner would reduce the risk of a more significant economic impact in the future. Musalem expressed a preference for a gradual approach to these increases, aligning his stance with Richmond Fed President Thomas Barkin.
His call came after the Fed held its target range at 3.75% to 4%, while September data showed core inflation rising to 3.1% and real spending growth slowing.
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