Fed Official Musalem Speaks Out: Tariff Replacements Won't Affect Economic Outlook

Musalem: Tariff Changes Don't Alter Economic Assessment

In a recent interview with Fox Business, 2028 FOMC voting member and St. Louis Fed President Musalem shared his views on current tariff policies. He noted that if tariffs are replaced on a one-to-one basis, it would not significantly change his outlook for the economy.

Focus on Corporate Tariff Refunds

Musalem emphasized that he wants to understand whether and how much companies might receive in tariff refunds under the new framework. His comments show a keen interest in how tariffs impact business costs.

Monetary Policy Outlook

When asked about potential rate cuts this year, Musalem stated that the current federal funds rate is at or below the so-called 'neutral rate'—a level that neither stimulates nor hampers economic growth. He noted that this rate is sufficient to support the Fed's dual mandate.