On June 19, St. Louis Federal Reserve President Mousalem said Tuesday that the conditions for the Federal Reserve to cut interest rates will take several months, more likely several quarters, to form. This is his first public comment on monetary policy since succeeding Brad as the local Fed chairperson. "I need to watch for a period of time for favorable inflation developments, demand moderation, supply expansion, before I can be convinced that a rate cut is appropriate, and these conditions will take several months, more likely several quarters, to form," Mousalem said. Mousalem also did not rule out the possibility of another rate hike in the event that inflation "significantly" exceeds 2% or the inflation rate reaccelerates, but he stressed that this is not his basic assumption. Mr. Musalem, who has a doctorate in economics and experience in markets, public policy and central banking, will rotate to become a voting member of the FOMC next year. He took office in April.