Cleveland Fed Pres. Loretta Mester
Cleveland Fed Pres. Mester is back on the wires in a interview on Yahoo finance:
- January PCE data was not too surprising
- January PCE reading does not change view that inflation is going downward
- There is a little more work for the Fed to do on inflation.
- It's all about risk management until we get to 2% inflation goal
- monetary policy is restrictive, demand should cool.
- We can't rely on pace of disinflation last year to continue this year
- Demand will moderate, growth this year will not be as strong as last year
- Does not want to focus on timing of the rate cut but the data
- Expects some slowdown in employment growth
- That slowing in employment growth is what we need to see to ease policy
- We do need to be more confident that inflation is on that downward path
- Baseline is we will see moderation in the labor market but it will still healthy
- Need to see continued disinflation
- Baseline forecast of three rate cuts still seems about right
- Economy and monetary policy is in a good spot
Cleveland Fed Pres. Mester is a voter this year.