St. Louis Fed President Musalem said on the 8th that the Federal Reserve will need to raise interest rates further to bring inflation back to its 2% target. Speaking at a Bloomberg-hosted event in New York, Musalem said "additional tightening will be necessary to return inflation to target in a timely manner." Regarding the Federal Open Market Committee meeting on the 27th and 28th, he said only that he approaches every meeting with a very open mind and holds no preconceptions. Musalem does not have a vote on the FOMC this year.
Musalem says further rate hikes are needed to return inflation to target, implying a higher policy rate.
Hawkish Fed commentary on additional tightening pushes Treasury yields higher.
