world-economy

Fed Official Signals End to Rate-Cut Cycle as Inflation Persists

Federal Reserve Bank of St. Louis President Alberto Musalem indicated that the central bank's easing bias is no longer consistent with current economic risks, suggesting the rate-cut cycle may have run its course. Speaking at an international banking conference, Musalem argued policymakers cannot rely on productivity gains from artificial intelligence to meaningfully reduce inflation pressures. His comments reflect broader concerns among central bankers worldwide about persistent price growth. Brazil's monetary policy director cited rising inflation expectations through 2028 as a mounting concern, while South Africa's central bank lifted rates for the first time since 2023 and signaled additional tightening ahead if geopolitical tensions persist. The hawkish chorus underscores mounting skepticism about near-term disinflation across major economies.