Fed’s Musalem: CPI data points to encouraging further progress, recession risks are low

Federal
Reserve
(Fed)
Bank
of
St.
Louis
President
Alberto
Musalem
noted
on
Thursday
that
while
the
disinflation
process
is
ongoing,
the
Fed
policymaker
would
like
to
see
more
progress
and
highlighted
that
recession
risks
remain
low.

Key
highlights

High
interest
rates
are
pressuring
parts
of
the
economy.

The
disinflation
process
is
ongoing.

I
see
the
economy
growing
between
1.5%
and
2%
this
year.

I
don’t
think
recession
risks
are
high
right
now.

I
don’t
see
a
recession
as
likely,
I
see
around
20%
odds.

The
current
unemployment
rate
is
still
low
despite
the
recent
rise.

I
supported
Fed’s
rate
decision
at
June
meeting.

Companies
are
still
facing
cost
pressures,
but
workers
are
easier
to
find.

Companies
saying
wage
growth
returning
to
pre-pandemic
levels.