St. Louis Federal Reserve President Alberto Musalem on Thursday raised the twin risks of rising inflation expectations and difficult-to-address stagflation, in remarks that highlighted the potentially difficult choices facing the U.

Federal Reserve Bank of St. Louis President Alberto Musalem said policy should remain “modestly restrictive” until it’s clear inflation is on track to the central bank’s 2% target, and that he sees increased risks that progress may stall or even reverse.

On Thursday, St. Louis Fed President Alberto Musalem warned that rising inflation expectations combined with the risk of stubborn stagflation could create a double challenge for the US economy. Assurance inflation is returning to 2% target needed before further policy changes; patient approach appropriate.

The US Federal Reserve’s battle to bring down inflation is at risk of stalling as concerns rise about the cost of tariffs, a senior bank official

Federal Reserve officials cautioned that uncertainty over the impact of President Trump's tariffs and immigration policies could impact the outlook for curbing inflation.

According to recently released minutes of the 28-29 January meeting, officials said President Trump's proposed tariffs and mass deportations of migrants, as well as strong consumer spending, were factors that could push inflation higher this year.