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Fed should cut interest rates 'gradually,' Musalem says

Published 09/27/2024, 03:44 PM
Updated 09/27/2024, 03:45 PM
© Reuters. FILE PHOTO: The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo

© Reuters. FILE PHOTO: The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo

(Reuters) - St. Louis Federal Reserve Bank President Alberto Musalem on Friday said the U.S. central bank should cut interest rates "gradually" after what he called the "strong and clear message" of a half-point interest-rate cut last week, which he said he supported.

"For me, it’s about easing off the brake at this stage. It’s about making policy gradually less restrictive,” Musalem said an interview with the Financial Times. If the economy or the labor market weakens more than he expects, he said, "a faster pace of rate reductions might be appropriate." 

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