Fed's Musalem: Further rate hikes may be needed in the next 6 to 9 months.

October 9 - St. Louis Fed President Musalem stated that the Federal Reserve needs to raise interest rates again to push inflation back to the 2% target level.

He said that in order to achieve the inflation target within a "timely" period, monetary policy needs to be further tightened. Musalem stated that if "timely" means approximately 18 months, then interest rates may need to be further raised at an appropriate time within the next 6 to 9 months. He said that current inflation remains the main issue facing the U.S. economy, but with strong economic growth and a stable job market, the Fed may be able to压低 inflation without significantly harming employment.

When asked whether interest rates should be raised at the October 27-28 policy meeting, Musalem said he remains open-minded and has not yet predicted the outcome of the meeting, but the inflation situation requires policymakers to continue considering further tightening of policy. Musalem stated that although U.S. Treasury yields have risen significantly, financial conditions remain accommodative and support economic growth. He said that rising yields do not mean investors have lost confidence in the Fed, but rather reflect market expectations of rising real interest rates and increased competition for capital in a strong economic environment.