Fed's Musalem says he is open minded on another rate cut, but tread with caution

Oct 10 (Reuters) - St. Louis Federal Reserve Bank President Alberto Musalem on Friday said that with interest rates now between modestly restrictive and neutral, there is possibly room for another interest-rate cut to shore up the labor market, but urged caution given too-high inflation.

"I am open minded about a potential further reduction in interest rates to provide further insurance against labor market weakening," Musalem said. "I believe that we have to tread with caution because there's limited room for further easing before monetary policy could become overly accommodative, and I believe that monetary policy should continue to lean against persistence in inflation."