Musalem Calls for Interest Rate Hike to Curb Inflation Above Target

Federal Reserve Bank of St. Louis President Alberto Musalem has called for an interest rate hike to curb inflation, which remains above the central bank's 2% target.

Musalem argued that a gradual and measured increase in interest rates from the outset is preferable, less disruptive and less costly than potentially sharper adjustments later.

The US economy shows resilience, with the labour market remaining stable, but inflation expectations could become unanchored if the Federal Reserve fails to bring price pressures under control.