Federal Reserve Bank of St. Louis President Alberto Musalem told the Financial Times on Friday that the United States central bank should cut its interest rates "gradually."
"For me, it's about easing off the brake at this stage. It's about making policy gradually less restrictive," he remarked, explaining that the country's economy might react "very vigorously" to a looser financial environment, which could potentially prolong the Fed's fight against inflation. Musalem will be a voting member in 2025.
He mentioned that a scenario where the Fed has to lower rates at a quicker pace could also be possible, as the economy might weaken more than he currently anticipates.
