St. Louis Fed President Alberto Musalem highlighted concerns about rising inflation despite signs of a softening labor market. He underscored the potential for trade and fiscal changes to create a double challenge: price increases and job losses. While acknowledging that long-term inflation expectations remain steady, he stressed the need for cautious monetary policy, closely monitoring incoming economic data, particularly in light of uncertainty regarding new policies’ impact on prices and employment. His remarks come as some Fed officials are considering keeping interest rates unchanged to combat potential inflationary pressures, particularly those related to tariffs stemming from former President Trump’s trade policies.