Fed's Mussallem: Fed may need to keep rates at higher levels longer

Gold Finance reports that Fed's Mussallem said that the risk of inflation stagnating above 2% or rising further appears to have increased in the near term; that patience with current policy is appropriate given that the Fed is gathering evidence that inflation is (in the process of) returning to its target; that he is cautious about assuming that all tariff-related price increases are temporary; that the second round of effects could be more prolonged; and that the Fed may need to keep interest rates higher for longer if the labour market continues to be strong and the second round of tariff effects are felt, the Fed may need to keep rates higher for longer or consider tighter policy.