Federal Reserve's Musalem: Economic growth will be below trend levels, inflation risks will rise

According to a report by Golden Jubilee, the Federal Reserve's Federal Reserve's Federal Reserve's Federal Reserve's Federal Reserve's Federal Reserve's Federal Reserve's Federal Reserve's Federal Reserve has stated that US economic growth may "significantly" decline below trend levels, and the unemployment rate will rise within the year as businesses and households will have to adapt to prices pushed up by new import tariffs. Musalem said, 'I don't have a baseline for a recession, but I believe economic growth may be significantly below trend,' estimating a growth rate of around 2%. He stated that "both sides of the risk will become a reality," with higher than expected tariffs putting pressure on prices, decreased confidence, and the recent sharp decline in the stock market potentially suppressing spending, impacting household wealth, and causing an impact on rising prices. These factors combined will lead to a slowdown in economic growth. Musalem, who has voting rights on interest rate policy this year, said that the response of monetary policy will depend on the evolution of inflation and unemployment in the coming months, whether price shocks continue, and whether inflation expectations are consistent with the Federal Reserve's 2% inflation target.