Alberto Musalem, president of the St. Louis Fed, revealed that he supported a rate hike during the last meeting, aligning with three other Fed officials who also broke from the July decision to hold rates steady. Although Musalem is a non-voting member of the FOMC this year, his remarks underscore a hawkish stance within the institution. He estimates inflation to be between 2.5% and 3% and advocates for gradual rate hikes. Market participants interpret these comments as reducing the likelihood of rate cuts at upcoming meetings.
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