The US economy is expected to continue expanding this year, but recent weaker-than-expected consumption and housing data, as well as reports from business contacts, have raised concerns that growth could be at risk, said Mousalem, president of the St Louis Fed. "Prospects for continued solid economic growth are good, the labour market is healthy and financial conditions are supportive," he said. "But recent data have been weaker than expected and there are some signs that business activity has slowed, suggesting at least some businesses are more cautious." He said he now sees current monetary policy as "moderately restrictive", an appropriate setting given that inflation remains above the Fed's 2 per cent target. "More monetary policy work is needed to achieve price stability." He endorsed the Fed's "patient" approach to further rate adjustments.