Fed's Musalem Flags Possible Rate Hikes as Inflation 'Already Here'

St. Louis Fed President Alberto Musalem stated that inflation is 'not just a risk. It is already here,' signaling a potential shift toward further interest rate hikes. This marks a hawkish deviation from recent market expectations of easing, introducing uncertainty about the Fed's policy path. The comment matters as it could pressure risk assets and lift yields if it reflects broader Fed sentiment.