Fed's Musalem: need to 'tread with caution,' little room to ease

Nov 10 (Reuters) - St. Louis Federal Reserve President Alberto Musalem on Monday said that with inflation closer to 3% than the central bank's 2% goal, the economy resilient, financial conditions accommodative and monetary policy close to neutral, the Fed should "tread with caution" on any further interest rate cuts.

"I think we need to continue to lean against inflation to make sure we bring inflation back down towards our 2% target while providing some insurance to the labor market," he told Bloomberg Television. "It's very important that we tread with caution here: I think there is limited room to ease policy further without policy becoming overly accommodative."