Fed’s Musalem Sees US Economic Rebound in First Quarter (1)

Federal Reserve Bank of St. Louis President Alberto Musalem said he expects the US economy to bounce back strongly early next year, underscoring the need for officials to approach additional interest-rate cuts with caution.

“We’re going to get, I think, a substantial rebound in the first quarter,” Musalem said Monday, citing an expected bump when the government shutdown ends, fiscal support, the impact of rate cuts already made and deregulation.

Speaking with Bloomberg reporters and editors, Musalem reiterated his view that current Fed policy is close to the level where it would no longer put downward pressure on inflation.