St. Louis Federal Reserve President Alberto Musalem pushed back against expectations for immediate monetary easing on Tuesday. Speaking on an MNI Webcast, Musalem said he sees "little reason for near term further easing of policy" while inflation remains above the central bank’s 2% target. He noted that current price growth is closer to 3% than the goal, though he expects it will decline this year.

Policy is currently positioned "right around neutral," making it unadvisable to maintain an accommodative stance. Musalem supported the December rate cut to address labor market risks, but now views the economy as resilient. He expects growth to meet or exceed potential in 2026, supported by fiscal stimulus and the lagged impact of previous cuts.

The job market is "cooling in an orderly way," with monthly job growth in the 30,000 to 80,000 range. While he remains concerned that inflation could prove more stubborn than expected, Musalem emphasized that the Fed is committed to returning inflation to 2%.