The Fed's Musalem is speaking and says:

  • Fed’s goals are in tension

  • Inflation running high, labor market showing signs of potential weakness

  • Balanced approach on monetary policy only works if inflation expectations are anchored

  • Less able to respond to short-term labor market fluctuations if inflation expectations become unanchored

  • Right now inflation expectations a little elevated up to 2 years out

  • Long-term inflation expectations are anchored

Source: Investing Live