This is a pretty sharp shift in tone from Musalem, who was leaning hawkish very recently.

• Outlook is for continued solid growth but recent data pose some downside risks
• Patient approach to policy will help achieve the Fed’s goals
• Says he would look closely at behavior of inflation expectations if dual goals come into conflict
• So far, longer-term inflation expectations remain broadly anchored
• Expects economy to continue to grow but would be concerned about signs of future weakening of consumption or dampening of business confidence

Musalem is a voter this year and it looks like recent dips in economic data and markets have him concerned. Last month he said he needed “assurances” inflation was returning to 2% target needed before further policy changes and that the inflation risk was higher than the jobs risk.

This article was written by Adam Button at www.forexlive.com.