Fed's Musalem (2028 voter, Hawk) says without further policy restraint, it is more likely inflation will remain substantially above 2% target 18 months from now

Interest rates likely need to climb further to tame inflation that is both demand- and supply-driven. Labor market stable around full employment and not a source of inflation pressure. Commodity shock is more than just oil, includes base metals like copper. Better for rate hikes to be 'earlier and incremental' rather than 'later and larger' Even when stripping out supply-related factors, inflation is still 'too high' at up to 3% Business contacts note they are planning on price increases 'closer to 3%'