Comments from the Fed's Mester on CNBC
- Tariffs are a headwind we need to take seriously
- The consumer spending number is important
- I'm looking to see if weakness in manufacturing is spilling over
- The fundamentals underlying consumer spending still look good
- It's incredibly important that we get to our 2% goal and get there sustainably
- I wouldn't change the funds rate just because we're running a bit 2% on inflation
- Tariffs and softer global growth account for weakness we're seeing
- Notes that wage growth slowed slightly in jobs report but report was pretty solid
- We came in at the start of the year expecting growth to slow to trend
- Repo rate is about reserves, not monetary policy
Mester is a hawk and I would have expected her to sound a bit more hawkish if she was going to fight against an Oct cut.
