Federal Reserve Bank of Cleveland President Weighs in on Rate Cuts and Data Requirements
Fed's Mester Signals Rate Cut Expectation Pending Data Confirmation
Federal Reserve Bank of Cleveland President Loretta Mester hints at potential rate cuts later this year but emphasizes the necessity of confirming economic data before taking action. Mester's stance is conditional on inflation trends, labor market stability, and economic growth remaining robust.
Mester cautioned that to pave the way for an easing in the stance of monetary policy she needs to see upcoming inflation data meet her forecast of further declines.
- If the economy evolves as expected, then in my view it will be appropriate for the Federal Open Market Committee to begin reducing the fed funds rate later this year, as inflation continues on its downward path toward 2%, and labor markets and economic growth remain solid.
- Mester said in the text of a speech prepared for delivery before a gathering held by the National Association for Business Economics, Cleveland Association for Business Economics, and Team NEO.
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