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Remarks on the U.S. Economic Outlook and Monetary Policy

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March 26, 2025

Event

St. Louis Fed President Alberto Musalem discussed the importance of the Fed’s regional structure and shared his views on the U.S. economic outlook and monetary policy at an event in Paducah, Ky. He gave a speech, “Remarks on the U.S. Economic Outlook and Monetary Policy,” and participated in a moderated Q&A at the event, which was hosted by the Paducah Area Chamber of Commerce and Greater Paducah Economic Development. Seema Sheth, senior vice president and regional executive of the St. Louis Fed’s Louisville Branch, served as the moderator.

View PDF of Remarks

Key Takeaways from President Musalem’s Remarks:

• The U.S. economy is continuing to expand, but the pace of growth appears to have moderated in the first quarter. Growth is being sustained by a healthy, full-employment labor market and generally supportive financial conditions. However, recent data on consumer spending have been weaker than expected and other data have been mixed.
• There is more work to do to bring inflation down to the 2% target. The risks that inflation will stall above 2% or move higher in the near term appear to have increased.
• I supported the FOMC’s decision last week to leave its target range for the federal funds rate unchanged and maintain a modestly restrictive policy stance. A patient and vigilant approach will help us as we seek maximum employment, price stability and a durable economic expansion for the American people.

Full Text of Prepared Remarks

Photos

This event took place during President Musalem’s March 25-26 visit to the St. Louis Fed’s Louisville Zone, which includes western Kentucky and southern Indiana.

During the trip, he visited the Paducah Innovation Hub and participated in a roundtable discussion with education leaders focused on workforce development. He also toured a former uranium enrichment plant owned by the U.S. Department of Energy. It is undergoing deactivation and will be repurposed, including for adjacent use of laser-based uranium enrichment technology.

Below are some photos from President Musalem’s trip. View his LinkedIn post and follow him on LinkedIn.

St. Louis Fed President Alberto Musalem delivered remarks on the U.S. economic outlook and monetary policy at a March 26 event in Paducah, Ky.

St. Louis Fed President Alberto Musalem (right) spoke with Steve Ybarzabal, principal of the Paducah Innovation Hub, during a March 25 tour of the facility in Paducah, Ky.

On March 26, St. Louis Fed President Alberto Musalem (second from left) toured a former uranium enrichment plant in western Kentucky owned by the U.S. Department of Energy.

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