---
title: "Federal Reserve official Musalem stated that there is almost no reason for further rate cuts in the near term"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/272446792.md"
description: "Alberto Musalem, President of the Federal Reserve Bank of St. Louis, stated that inflation risks are easing and prices are expected to align with the central bank's target later this year. He pointed out that the current interest rate level is neutral, neither stimulating nor slowing down the economy, and there is no need for further rate cuts in the context of high inflation. Musalem sees little reason for further policy easing in the short term"
datetime: "2026-01-13T18:25:45.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/272446792.md)
  - [en](https://longbridge.com/en/news/272446792.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/272446792.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/272446792.md) | [繁體中文](https://longbridge.com/zh-HK/news/272446792.md)


# Federal Reserve official Musalem stated that there is almost no reason for further rate cuts in the near term

Alberto Musalem, President of the Federal Reserve Bank of St. Louis, stated that inflation risks are easing, and prices are expected to start aligning with the central bank's target later this year.

Musalem indicated that after last year's interest rate cuts, monetary policy is well-prepared to address risks related to price stability or employment. He noted that the current interest rate level is just around the neutral zone, which neither stimulates nor slows down the economy. He also reiterated that there is no need for further rate cuts in the face of persistently high inflation.

Musalem said during an MNI Webcast on Tuesday, "I expect inflation to return to our 2% target this year. Today's inflation data is encouraging in this regard. I believe the current policy is in a very good position, balancing the expected trajectory of the economy with the risks on both sides."

Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that the year-on-year increase in the core consumer price index, excluding the more volatile food and energy categories, was 2.6%, matching the lowest level in four years.

Federal Reserve officials hinted that they might keep interest rates unchanged this month, after the central bank cut the benchmark rate by 0.75 percentage points last year. Given the ongoing softening of the labor market while inflation remains above target levels, there are disagreements among policymakers regarding the optimal path for interest rates. Some officials urge prioritizing inflation control, while others advocate for further rate cuts to boost employment.

Investors expect that the likelihood of Federal Reserve officials cutting rates again at their next meeting on January 27-28 is slim, while betting on two rate cuts in 2026, each by 25 basis points. In the median forecast released by the Federal Reserve in December, policymakers anticipated one rate cut this year.

Musalem stated, "I can hardly see a reason for further easing of policy in the short term." He added that further rate cuts would push policy into the "easing zone."

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