Cleveland Fed Pres. Loretta Mester
- Fed has yet to make any progress lowering inflation
- Monetary policy needs to be moved to restrictive levels
- Size of Fed rate hikes will depend on economic conditions
- Unemployment at 4.5% by the end of 2023, to move higher in 2024
- Expects inflation to fall to 3.5% next year, to 2% by 2025
- Possible shock could tip US economy to recession
- The fight to lower inflation is painful but it must happen
- Expects weak growth over the next couple of years
There's no hint in a pivot in these comments but Mester is generally a hawk so it's not a surprise.
