Aussie Plunging on GDP Miss

post: *FED’S MUSALEM: TIME MAY BE APPROACHING TO SLOW OR PAUSE RATE CUTS post: FED’S MUSALEM: TOO MUCH POLICY EASING CARRIES RISKS post: *FED’S MUSALEM: UNCERTAINTY ON NEUTRAL RATE, COULD BE BETWEEN 3%-4% post: FED’S MUSALEM: IT IS IMPORTANT TO KEEP MONETARY POLICY OPTIONS OPEN AMID UNCERTAINTY.Remarks on the U.S. Economy and Monetary Policy Good morning. It is great to see many friends and former colleagues again. I would like to thank Bloomberg and the Global Interdependence Center for the invitation to participate in this symposium, and for the opportunity to share a few observations about the U.S. economy and implications for monetary policy.1 First, let me state that these are my personal views and not necessarily those of the Federal Reserve or my colleagues on the Federal Open Market Committee (FOMC). Let me begin by summarizing current conditions as follows: The dual mandate goals of maximum employment and stable prices are within sight, monetary policy is well positioned, and there is more work to do on inflation. Economic activity has been robust with real GDP above its long-term potential in terms of both levels and growth rates. Spending by households and businesses has remained elevated, and financial conditions are broadly supportive of a growing economy. The fourth quarter is also looking strong. Labor market conditions are consistent with full