St. Louis Federal Reserve President Alberto Musalem on Monday reiterated his support for last week's interest rate cut, but said he is wary about going much further.

Speaking less than a week after the Federal Open Market Committee lowered its key overnight borrowing rate by a quarter percentage point, the central bank official advocated caution as he continues to worry about inflation.

Musalem characterized the cut as "a precautionary move intended to support the labor market at full employment and against further weakening."

"The stance of monetary policy now lies between modestly restrictive and neutral, which I view as appropriate," he added in prepared remarks for a speech to the Brookings Institution in Washington, D.C. "However, I believe there is limited room for easing furthe

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