Fed's Mussallem: Economy expected to continue to grow, but sees risks in recent data

St Louis Fed President Mussallem said the US economy is expected to continue to expand this year, but recent weaker-than-expected consumer and housing data and reports from business contacts have raised concerns about possible risks to growth. The outlook for continued solid economic growth is good, the labour market is healthy, and financial conditions are supportive,’ he said. But recent data have been weaker than expected and there are some signs that business activity has slowed, suggesting that at least some firms are being more cautious.’ He said he currently considers current monetary policy to be ‘moderately restrictive,’ an appropriate setting given that inflation remains above the Fed's 2 percent target. ‘More monetary policy work is needed to achieve price stability.’ He echoed the Fed's current ‘patient’ approach to further interest rate adjustments.