According to CoinMeta, Alberto Musalem, the president of the Federal Reserve Bank of St. Louis, stated that inflation risks are on the rise, and any tolerance for inflation exceeding targets represents a direct threat to the credibility of the Federal Reserve, rather than a reasonable trade-off for the sake of productivity growth. He pointed out that a stable labor market and persistent inflation provide him with a stronger basis for advocating for maintaining or ultimately raising interest rates, which will put pressure on risk-sensitive currencies, including the Australian dollar. Musalem's remarks were made publicly for the first time after last week's Federal Reserve meeting. He emphasized that monetary policy must continue to play its role in reducing inflation, rather than relaxing policies in the hope of promoting higher productivity growth.