Fed's Musallem: The economy is expected to continue to grow, but risks are seen from recent data

Odaily reports that St. Louis Fed President Mussalem said the US economy is expected to continue expanding this year, but recent weaker-than-expected consumer and housing data, as well as reports from business contacts, have raised concerns about the risks to economic growth. He said: "The prospects for the economy to continue growing steadily are good, the labor market is healthy, and financial conditions are also supportive. But the recent data has been weaker than expected, and some signs indicate that business activity has slowed, at least suggesting that some businesses are more cautious." He said that he currently believes the current monetary policy is "moderately restrictive," which is an appropriate setting given that the inflation rate is still above the Fed's 2% target. "More monetary policy work is needed to achieve price stability." He expressed his approval of the Fed's current "patient" approach to further adjusting interest rates. (Jinshi)