Fed's Musalem: Tariff retaliation less than feared

WASHINGTON, Sept 22 (Reuters) - Foreign retaliation against U.S. tariffs has been far less than feared, St. Louis Fed president Alberto Musalem said on Monday, with the impact of import taxes on inflation expected to fade after two or three quarters.

"There was angst about large retaliation...So far, the retaliation has been more modest, or almost nonexistent, compared to what was expected," Musalem said in comments at the Brookings Institution. "I expect the effects of tariffs on inflation to fade in the next two to three quarters."