06:57 PM EDT, 08/06/2026 (MT Newswires) -- Federal Reserve Bank of St. Louis President Alberto Musalem said policymakers cannot afford to tolerate elevated inflation while waiting for potential productivity gains, multiple outlets reported Thursday, citing remarks prepared for an event in Sao Paulo.

Musalem said monetary policy needs to meaningfully restrain underlying inflation rather than accept higher prices now in hopes of future productivity growth, according to reports.

Musalem added that while restrictive policy can also slow innovation, officials cannot take the public's confidence in the Fed's inflation-fighting credibility for granted, the reports said.

Musalem, who does not vote on policy this year, said last week he had favored a quarter-point hike at the July meeting, the report said.