Alberto Musalem, a member of the U.S. Federal Reserve, emphasized the utility of forward guidance when interest rates are near zero, framing it as a strategic tool rather than a firm commitment. The Fed has held interest rates steady at 3.50%–3.75% since the beginning of 2026, with inflation remaining above the 2% target despite a stable labor market, unemployment holding around 4.2%. Markets are pricing in a 59% probability that the Fed will keep rates unchanged at its October 28, 2026 meeting. Upcoming economic indicators and statements from Fed officials will be closely watched for signals about potential policy shifts.
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