Inflation will move toward 2% target, but risks to outlook are rising, says Fed’s Musalem

Key Points

During a keynote address at the National Association for Business Economics conference, Musalem noted that his baseline case is for inflation to gradually move toward the central bank’s 2% target.
However, “near-term inflation expectations have risen substantially over the last few weeks, and that’s something I’m watching closely,” Musalem added.

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