St. Louis Federal Reserve Bank President Alberto Musalem said on Monday that he supports further rate cuts under healthy economic development, while noting that the central bank should act cautiously to avoid over-loosening monetary policy.

According to reports, the official said at a New York University money market dealer conference, "Over time, it may be appropriate to further gradually lower the policy interest rate." He pointed out, "I will not prejudge the scale or timing of future policy adjustments, 'patience' is very beneficial to the Federal Reserve."

Musalem, who took office earlier this year and does not have voting rights in the Federal Open Market Committee that sets interest rates, spoke as the interest rate outlook was once again overturned.

Public information shows that last Friday, the U.S. government released data showing an unexpectedly strong job market, casting doubt on the widespread concern that the labor market is weakening. Last month, the Federal Reserve lowered the interest rate target by half a percentage point, to between 4.75% and 5%, because inflationary pressures have significantly eased amid a large number of signs that the job market is softening.

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The Federal Reserve also planned to cut interest rates by half a percentage point before the end of the year. However, the strong employment situation in September has led people to question how much the Federal Reserve needs to cut interest rates.

Reports indicate that Musalem pointed out that he supports the Federal Reserve's latest interest rate decision and said that his expectations for monetary policy are "slightly higher than the median forecast of colleagues." However, Musalem advocates for cautious rate cuts, "Considering the current economic situation, I believe the cost of easing too much too soon is greater than the cost of easing too little too late." Musalem said.

The official also said that the unexpected strong September employment data, in the recent Federal Reserve policy meeting "what I planned" the monetary policy path "may still be appropriate." He added, "I think the risk of the inflation rate hovering above 2% or rising from now on has decreased."

Reports indicate that Musalem also pointed out that financial conditions are generally still favorable to economic activity, and the economic expansion is expected to continue; there is no conflict between the Federal Reserve's interest rate cuts and continued efforts to reduce the balance sheet size.

The report points out that Musalem ignores some investors' concerns about short-term market turmoil at the end of the third quarter. He advocates for ending quantitative tightening policies in the near future and points out that the Federal Reserve still has a firm grip on its interest rate targets. As of July, according to data from the New York Fed, market participants expected quantitative tightening policies to end in the spring in a survey.