On April 12th, Alberto Musalem, President of the Federal Reserve Bank of St. Louis, stated that there is a risk of rising inflation and a weakening labor market in the short term, which requires policymakers to remain vigilant when monitoring future data releases. Musalem reiterated his concerns about the potential sustainability of some of the inflationary effects caused by tariffs, and emphasized that maintaining stable long-term inflation expectations is crucial for officials. At present, there is a high degree of uncertainty regarding the net impact and timing of new trade, immigration, fiscal, and regulatory policies on prices, employment, and economic activity, and the possibility of rising inflation accompanied by a weakening labor market is a clear possibility that must be carefully considered, “Musalem said at an event in Spring, Arkansas on Friday.
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