Back
11 Jan 2024
Fed's Mester: Fed needs more evidence economy is progressing as expected
Federal Reserve (Fed) of Cleveland President Loretta Mester gave her perspective on the Fed rate outlook during a televised interview with Bloomberg.
Key highlights
- Fed is not "there" yet on rate cuts, want more evidence that economy is progressing as expected.
- Fed's current evaluation is for how much longer rates to be kept high, policy kept restrictive.
- Inflation has to be coming down on a "sustainable basis" before rate cut conversation can happen.
- Fed needs to calibrate policy to achieve a soft landing.