The Fed should cut interest rates “gradually,” says Reuters’ Musalem

(Reuters) – The president of the Federal Reserve Bank of St. Louis, Alberto Musalem, said on Friday that the US central bank should cut interest rates “gradually” after what he called the “strong and clear message” of a half-point rate cut last week, which he said he supports him.

“For me, it’s about easing off the brakes at this stage. It’s about making the policy gradually less restrictive,” Musalem said in an interview with the Financial Times. If the economy or labor market weakens more than expected, he said, “a faster pace of rate cuts may be appropriate.”