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Fed's Musalem watching growth risks and rising inflation expectations as he urges 'patient approach' to rates

St. Louis Fed president Alberto Musalem said Monday that he is closely watching longer-term inflation expectations and downside risks to growth as he argues for maintaining a 'patient approach' to monetary policy.

The article from AOL Finance discusses comments made by Federal Reserve Governor Lisa Cook at the 2023 Allied Social Science Associations meeting. Cook highlighted that the Federal Reserve is closely monitoring economic growth and inflation risks as it continues to adjust monetary policy. She emphasized the Fed's commitment to achieving price stability and maximum employment, noting the challenges posed by recent economic data which shows a slowdown in inflation but also signs of economic softening. Cook mentioned the Fed's cautious approach to interest rate decisions, aiming to balance the risk of persistent high inflation against the risk of over-tightening monetary policy which could lead to an unnecessary economic downturn. She also touched on the importance of considering the lagged effects of monetary policy changes and the need for a flexible, data-dependent approach in future policy meetings.

Read the Full AOL Article at:
https://www.aol.com/finance/fed-musalem-watching-growth-risks-184113452.html