By Howard Schneider

WASHINGTON (Reuters) -St. Louis Federal Reserve President Alberto Musalem said on Monday he supported the rate cut at last week’s Fed meeting as a precautionary move to protect the job market, but said there may be “limited room” for further reductions given inflation above the Fed’s 2% target.

“I supported the 25-basis-point reduction in the FOMC’s policy rate last week as a precautionary move intended to support the labor market at full employment and againstfurther weakening,” Musalem said in remarks prepared for delivery at the Brookings Institution in Washington D.C.

“However, I believe there is limited room for easing further without policy becoming overly accommodative, and we should tread cautiously.”

Musalem is a voter on interest rate policy this year, and

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