Fed's Musalem (2028 voter) says the Fed's policy rate is below long-run neutral rate and longer-term inflation expectations are drifting up, and labour market is stable

Is prepared to adjust his policy views if evidence becomes clear that higher productivity growth is likely to ease inflation pressures. It is risky to rely on the prospect of higher productivity growth to solve today’s inflation problem. Data on the productivity effects of artificial intelligence are inconclusive, while demand pressures are real. The Fed needs to maintain a vigilant focus on returning inflation to its 2% target. Caution is needed amidst upward inflation pressures.