Federal Reserve Bank of St. Louis President Alberto Musalem said on Thursday he will not prejudge the central bank’s next policy move, leaving the door open for the September FOMC meeting.
Musalem, who previously favored a rate hike at the July meeting, reiterated that inflation remains more likely to stay above target. He argued that acting now could reduce the need for more aggressive tightening later, but stressed that any decision would hinge on incoming economic data.
“I want to maintain an open mind into every meeting,” Musalem said in an interview with CNBC. “What I will recommend next month depends on the data.”
The remarks underscore the Fed’s data-dependent approach as officials weigh whether further rate increases are warranted to bring inflation sustainably back to 2%. Musalem’s comments follow the central bank’s July policy meeting, where policymakers opted to hold rates steady after a series of hikes earlier in the year.
