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St. Louis Fed President Musalem said the Federal Reserve needs to raise interest rates again to push inflation back to its 2% target. He stated that monetary policy needs to be tightened further to achieve the inflation target within a "timely" period. Musalem said that if "timely" means about 18 months, then rates may need to be raised further at an appropriate time within the next 6 to 9 months. He said inflation remains the main problem facing the U.S. economy, but with strong economic growth and a stable job market, the Fed may be able to lower inflation without significantly harming employment. When asked whether rates should be raised at the October 27-28 policy meeting, Musalem said he remains open-minded and has not prejudged the outcome of the meeting, but the inflation situation requires policymakers to continue considering further tightening. Musalem said that despite the notable rise in U.S. Treasury yields, financial conditions remain loose and supportive of economic growth. He said the rise in yields does not mean investors have lost confidence in the Fed, but rather reflects market expectations that real interest rates will rise, as well as increased competition for capital in a strong economic environment.