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Fed Leaders Advocate Caution Amid Persistent Inflation Risks

9/22/2025

31 2 Full Breakdown

Summary

Story summary

Sept 22, 2025: St. Louis Fed President Alberto Musalem at Brookings backs a 25-basis-point rate cut.
He warns limited room for further cuts; inflation remains above 2% and 'supercore' inflation exceeds 4%, tariffs adding uncertainty.
Atlanta Fed President Raphael Bostic also sees persistent inflation, forecasting only one more rate cut in 2025 as growth strengthens and layoffs stay low.

History

Historical Context

In response to the 2008 financial crisis, the Federal Reserve, under Chairman Ben Bernanke, slashed the federal funds rate to near zero, aiming to combat a 10% unemployment rate. This aggressive monetary policy parallels current discussions, as St. Louis Fed President Alberto Musalem advocates for a 25-basis-point cut to address ongoing inflation challenges, with 'supercore' inflation surpassing 4%.

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Story summary

Sept 22, 2025: St. Louis Fed President Alberto Musalem at Brookings backs a 25-basis-point rate cut.
He warns limited room for further cuts; inflation remains above 2% and 'supercore' inflation exceeds 4%, tariffs adding uncertainty.
Atlanta Fed President Raphael Bostic also sees persistent inflation, forecasting only one more rate cut in 2025 as growth strengthens and layoffs stay low.

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