Fed’s Musalem in favour of more rate cuts

Right approach: Musalem (left) with his New York counterpart John Williams at a monetary policy conference in Palo Alto, California. The St Louis Fed president supports rate cuts and says it is good for the central bank to be cautious. — Reuters

NEW YORK: Federal Reserve (Fed) Bank of St Louis president Alberto Musalem says he supports more interest rate cuts as the US economy moves forward on a healthy path, while noting that it is appropriate for the central bank to be cautious and not overdo easing monetary policy.

“Further gradual reductions in the policy rate will likely be appropriate over time,” he said at a meeting of the Money Marketeers of New York University, noting that “patience” has served the Fed well.