US Inflation May Require Further Rate Hikes: St. Louis Fed President

St. Louis Fed President Alberto Musalem has warned that US inflation pressures may require further Federal Reserve rate hikes to bring inflation back to target.

Musalem, who is not a voting member of the Federal Reserve's rate-setting Federal Open Market Committee (FOMC), stressed the need for monetary policy to be sufficiently restrictive to control inflation.

He noted that persistent demand and recurring supply forces are contributing to elevated inflation risks, and without further policy restraint, it's more likely that inflation will remain above the 2% target in 18 months.

Musalem emphasized the importance of acting earlier with gradual policy tightening, as delaying action could lead to larger and more abrupt measures later on.