Fed's Musalem says no more rate cuts needed with policy now at neutral level

Core Viewpoint - The U.S. Federal Reserve does not need to cut interest rates further unless there is a deterioration in the job market or a significant drop in inflation [1][3]. Group 1: Interest Rate Policy - The current policy rate range of 3.50%-3.75% is considered neutral by the St. Louis Federal Reserve President [2]. - There is no need for additional monetary stimulus as the economy is expected to grow above trend, supported by favorable credit conditions and fiscal policy [2]. Group 2: Economic Outlook - Economic growth is supported by tailwinds, and inflation is currently above the target, making it inadvisable to lower rates into accommodative territory [3]. - Inflation is expected to decline towards the Fed's 2% target, although there are risks that it could persist above this level [3]. - There is currently less risk of a substantial deterioration in the job market [3].