Gasoline/EUR

Good afternoon. I would like to thank the Paducah Area Chamber of Commerce and Greater Paducah Economic Development for inviting me to speak with you today. I have been president and CEO of the Federal Reserve Bank of St. Louis for almost a year. During that time, I have welcomed the opportunity to visit and to hear from the people in the many unique communities that make up the Eighth Federal Reserve District. So, thank you for being here today. When Congress established the Federal Reserve System more than 100 years ago, it recognized that economic conditions vary across the United States. Congress intentionally gave the Fed a regional structure to ensure that Main Street perspectives are heard and considered in setting our nation’s monetary and banking policies. That structure works. I have found my visits to the different parts of the Eighth District valuable in preparing for meetings of the Federal Open Market Committee, or FOMC. In talking with business and community leaders, I have learned about economic conditions across our District, the nation and the global economy. I share insights from these conversations when I participate in FOMC meetings, and my colleagues from other Reserve banks do the same by reporting on their regions. Together, these reports help us as we seek maximum employment and price stability for the American people throughout the United States. Before addressing some questions that may be on your mind, I would like to first offer some comments on the U.S. economic outlook and monetary policy. Let me stress that these are my personal views and not necessarily those of my FOMC colleagues. I have three main observations: First, the U.S. economy is continuing to expand, but the pace of growth appears to have moderated in the first quarter, reflecting both rough winter weather and eleva post: Fed's Musalem: If the the labor market remains strong and second round tariff effects become apparent, fed may need to keep rates higher for longer or consider more restrictive policy. post: Fed's Musalem: Patience with current policy appropriate as the Fed gathers evidence inflation is returning to target.