Musalam: Interest rates need to be raised in the next 6 to 9 months to achieve inflation targets

St. Louis Fed President Musalem said that the Fed needs to raise interest rates again to push inflation back to its target level of 2%, and monetary policy needs to be tightened to achieve the target within the timely deadline. Musalam said that if timely means about 18 months, then interest rates need to be raised at an appropriate time in the next 6 to 9 months. Musalam said that current inflation is the main problem facing the US economy, but with strong economic growth and a stable job market, the Federal Reserve can lower inflation without significantly damaging employment. Musalam remains open about whether to raise interest rates at the October 27-28 meeting and has not yet predicted the outcome, but the inflation situation requires policymakers to consider tightening policies. Musalam stated that despite the significant increase in US bond yields, the financial environment remains loose and supports economic growth. The rise in yields reflects market expectations of rising real interest rates and intensified capital competition in a strong economic environment.