Federal Reserve's Musalam said it may need to maintain interest rates within the range of 3.50% -3.75%

On April 16th, Jin Shi Data reported that the Federal Reserve's Musa Lem said on Wednesday that high oil prices may cause the basic inflation rate for the rest of this year to be nearly one percentage point higher than the Fed's 2% target, and the Fed may need to maintain interest rates within the range of 3.50% -3.75% for a period of time. He expects the core inflation rate to be slightly below 3% or around 3% by the end of this year, with further upward risks. Musalam pointed out that the rise in oil prices has an impact on the inflation rate of the service industry. If the inflation rate rises and drives inflation expectations, he is open to raising interest rates. He also mentioned that the oil market has experienced its third negative supply shock in 12 months, coupled with tariff hikes and stricter immigration regulations, the inflation outlook and job market are at risk, and economic growth may slow down to 1.5% -2%. AI interpretation: Federal Reserve officials' statements clearly indicate their views on maintaining interest rates, reflecting a high level of concern about inflationary pressures. The impact of high oil prices is considered an important factor driving inflation upward, which will directly affect the direction of monetary policy. Musalam's viewpoint emphasizes the risk of slowing economic growth, indicating that the market's expectations for future interest rate policies will be more cautious. Overall, this statement will intensify market attention on the future path of interest rate hikes by the Federal Reserve.