Musalem Discusses Fed’s Dual Mandate and Monetary Policy during Louisville Event

August 15, 2024

Video

St. Louis Fed President Alberto Musalem shared his views on the Fed’s dual mandate of price stability and maximum employment and on U.S. monetary policy during a fireside chat at the Greater Louisville Inc. Regional Economic Development Update event in Kentucky.

In brief remarks before a Q&A with Seema Sheth, senior vice president and regional executive of the St. Louis Fed’s Louisville Branch, Musalem noted that U.S. monetary policy is moderately restrictive. He also said the U.S. economy grew at a solid pace in the first half of this year, inflation seems to have returned to a path consistent with 2% over time (the Fed’s target), and several indicators signal labor market cooling.

“Absent new economic shocks, the risk of inflation rising seems to have declined, while the risk of unemployment rising further seems to have increased. From my perspective, the risks to both sides of the mandate seem more balanced,” he said. “Accordingly, the time may be nearing when an adjustment to moderately restrictive policy may be appropriate.”

Musalem also addressed questions about information used for making policy decisions, the likelihood of recession, recent volatility in financial markets, housing costs, and more.

Photos

This event was during Musalem’s Aug. 15-16 visit to Louisville. While there, he discussed health care economics with leaders at Norton Healthcare, one of the area’s top employers and part of an industry that is important to the area economy. In addition, he toured Norton Brownsboro Hospital, where physicians demonstrated the facility’s state-of-the-art technology. Musalem also met with other business leaders to learn about local economic conditions and emerging trends during his trip.

Conversations with business and community leaders in the Eighth Federal Reserve District provide Musalem with valuable insights about the economy and people’s experience with it.

Below are some photos from Musalem’s Louisville visit.

Musalem speaks into a microphone while seated next to a woman on a stage in front of audience members.

St. Louis Fed President Alberto Musalem (left) answered questions on the U.S. economy and monetary policy during a Greater Louisville Inc. event on Aug. 15, 2024. The Q&A was moderated by Seema Sheth (right), senior vice president and regional executive of the St. Louis Fed’s Louisville Branch.

Musalem talks to a group of people seated with him at a table.

On Aug. 16, 2024, St. Louis Fed President Alberto Musalem (right) met with Norton Healthcare leadership, including President and CEO Russell Cox (left), before touring Norton Brownsboro Hospital in Louisville, Ky.

Musalem and a woman watch and listen as a man in hospital scrubs gestures to a machine.

During a tour of Norton Brownsboro Hospital on Aug. 16, 2024, St. Louis Fed President Alberto Musalem (right) and Senior Vice President Seema Sheth (left), regional executive of the St. Louis Fed’s Louisville Branch, listened as neurosurgeon Dr. Tom Yao explained a biplane imaging machine.