Alberto Musalem, president of the Federal Reserve Bank of St. Louis, stated that the U.S. unemployment rate is near its long-term level, with a resilient economy and a stabilized labor market. Inflation currently stands between 2.5% and 3%, slightly above the Fed’s 2% target. The labor market is not contributing significantly to inflationary pressures, with unemployment between 4.2% and 4.4%. This situation suggests reduced urgency for a rate hike in 2026, as indicators remain within a manageable range for the Federal Reserve.
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