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Federal Reserve Bank of St. Louis President Alberto Musalem suggested that a pause in interest-rate cuts may be imminent, with a decision influenced by incoming data. He expressed a preference for a gradual approach to rate reductions, cautioning that the risks of cutting too quickly outweigh those of easing too little.
Federal Reserve Bank of St. Louis President Alberto Musalem indicated that the central bank is nearing its inflation and employment targets. He emphasized the need for a "moderately restrictive" policy while inflation remains above the 2% goal, suggesting that gradual rate cuts could occur if inflation continues to decline.
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