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October 30, 2026 4:30 pm
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Federal Reserve official Musalem said the Fed may need to raise interest rates again soon. Musalem said inflation remains too high and is unlikely to ease unless the Fed acts, adding that the degree of policy accommodation should be reduced further so inflation converges to 2% within 18 months. Musalem also said the rise in long-term bond yields reflects expectations for higher policy rates and that raising rates earlier could reduce the risk of shocks across the broader economy.