Fed's Musalem Says That Without Further Policy Restraint, It's More Likely Inflation Will Remain Substantially Above 2% Target 18 Months From Now; Interest Rates Likely Need To Rise Further To Tame Inflation That Is Both Demand- And Supply-Driven

In a recent interview, Federal Reserve official Musalem indicated that without additional policy restraint, inflation is likely to remain significantly above the 2% target in the next 18 months. He emphasized that interest rates may need to increase further to address inflation driven by both demand and supply factors. This statement could have implications for market expectations regarding future interest rate hikes.