FED'S MUSALEM SAYS THAT WITHOUT FURTHER POLICY RESTRAINT, IT IS MORE LIKELY INFLATION WILL REMAIN SUBSTANTIALLY ABOVE THE 2% TARGET 18 MONTHS FROM NOW, ADDING THAT FURTHER HIKES ARE LIKELY NEEDED TO

TAME INFLATION THAT IS BOTH DEMAND- AND SUPPLY-DRIVEN, AND THAT HE PREFERS 'EARLIER AND INCREMENTAL' RATE HIKES RATHER THAN 'LATER AND LARGER'.

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