Fed's Musalem says central bank should have hiked rates at last meeting - KITCO
Fed's Musalem says central bank should have hiked rates at last meeting - KITCO
Source: KITCO
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DW NOTE
Musalem is dissenting after oil has already fallen, not before it rose. The Fed held rates at 3.5–3.75% in July with the Strait of Hormuz closed, 2,000 ships stranded in the Gulf, and shipping costs adding 20% to the barrel price. Now that diplomacy is advancing and crude is easing, he calls the July hold a mistake. If he wanted a hike to cool inflation, he needed to say so when the risk was live — not after markets have already priced in the relief.