The President of the Federal Reserve Bank of St. Louis, Alberto Musalem, stated that the central bank is close to achieving its inflation and employment objectives. He emphasized the need to maintain a "moderately restrictive" policy stance as long as inflation remains above the Fed's 2% target.

Musalem delivered these remarks to the Economic Club of Memphis, highlighting that monetary policy is well-positioned to reach the inflation target and support maximum employment through gradual adjustments to the policy rate. He also mentioned that these adjustments should aim for a neutral level over time, depending on the continued decline in inflation towards the 2% goal. A neutral policy rate is one that does not stimulate or restrict economic growth.