Federal Reserve Bank of St. Louis President Alberto Musalem said current economic conditions do not justify a 50-basis-point reduction in the U.S. benchmark interest rate at the Federal Open Market Committee’s September meeting. In a CNBC interview on 14 August, Musalem argued that both the state of the economy and incoming data fall short of supporting such an aggressive move. Musalem noted that the labor market remains at or near full employment even though hiring has slowed, while inflation continues to run above the Federal Reserve’s 2% target. He added that cutting rates too sharply could lift inflation expectations and prove counter-productive. Although he has raised his assessment of downside risks to employment and sees slightly lower inflation risks, Musalem stressed it is still too early to decide on the appropriate policy action next month and will adjust his view as further data arrive. Fed officials kept the federal-funds rate unchanged at 4.25%–4.50% in July after trimming it by one percentage point late last year. Market participants largely expect a quarter-point cut in September, but Treasury Secretary Scott Bessent has publicly floated the possibility of a larger move. Musalem’s comments underscore the internal debate as policymakers balance persistent price pressures against signs of cooling momentum in hiring.