Fed's Musalem: Business are bracing to pay higher input costs, raise prices

WASHINGTON, May 23 (Reuters) - Businesses expect rising input costs and anticipate raising their own prices as well, St. Louis Fed president Alberto Musalem said on Friday.

“On the business side there is ... a higher expectation of higher prices going forward for inputs and for outputs," Musalem said in comments to a business forum in Northwest Arkansas. "I am watching that very carefully for consumers and for businesses. We at the Fed don’t want short-term expectations to rise to such a level that they could seep into long-term inflation expectations."