Federal Reserve official Mousa Salem said that the policy interest rate is approaching a neutral level.

St. Louis Federal Reserve Bank President Alberto Musalem said that the US central bank must continue to exert downward pressure on inflation and warned that interest rates are approaching a level where this type of pressure can no longer be provided. Musalem said at an event organized by the New York Fixed Income Analysts Association on Thursday, "We must be very cautious, continuing to work to suppress inflation above the target level." He added that current monetary policy is "somewhere between slightly tight and neutral. In terms of financial conditions, it is approaching neutral." His comments echoed those made earlier on Thursday by Cleveland Federal Reserve Bank President Loretta Mester. She said that at present, she sees no reason to support another interest rate cut when policymakers meet in December.