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Fed's Musalem warns against central bank silence amid volatility risks

Original: Fed’s Musalem warns against central bank silence amid volatility risks

St. Louis Fed President Alberto Musalem cautioned that central banks should not stay silent when facing market volatility, arguing that clear communication is needed to manage risks and anchor expectations. The remarks come as investors watch the Federal Reserve's policy stance amid uneven inflation progress and shifting rate expectations.

Why now: Markets are sensitive to Fed signaling amid current volatility, so a policymaker publicly urging against silence draws attention.

Federal ReserveAlberto MusalemSt. Louis Fed

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