TechFlow news, on January 10, according to Jinshi Data, a Federal Reserve official said he viewed last month's rate cut decision as "a close call," as the current economic outlook appears different from when the Fed began cutting rates four months ago. St. Louis Federal Reserve President Musalem said that by the time of last month's meeting, the risk of inflation hovering between 2.5% and 3% had increased. Therefore, he believes further rate cuts should be approached with greater caution. Musalem had previously indicated support for the Fed's 50-basis-point rate cut in September. "Since September last year, things have changed," he said in an interview on Thursday. "Economic data has been stronger, and inflation figures are higher than expected. So I've changed my assessment of the risks." Future rate cuts, he added, "must be gradual, and more gradual than I imagined back in September." Musalem stated that labor market conditions remain solid and require close monitoring, but there are still "inflation issues" within the Fed's mandate. Because his estimate of the neutral interest rate is slightly higher than most of his colleagues', the current policy rate may be slightly below appropriate restrictive levels.
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