Cleveland Fed Pres. Mester
Fed's Mester is on CNBC. She is a voting member in 2022 but not in 2023:
- Makes sense to slow down a bit the pace of rate hikes
- Can it now be very deliberate in setting policy
- Need to be more judicious and bouncing risks
- Not anywhere near to stopping rate hikes though
- We've had some good news on inflation front
- need more good news on inflation and sustained good news
- Very grateful we are seeing some encouraging signs on inflation
- Question is how do we calibrate policy to get back to 2% inflation goal
- Getting back to 2% will take some time
- I do think we need to get into restrictive territory. Right now we are barely there
- Rate path will depend on the economy
- We are moving into a different cadence on the policy, letting data guide us
- I will be listening to my contacts, as their feedback is more forward-looking
- I think we can slow down from 75 at December meeting
- But we need to let economy tell us going forward the pace of hikes after that
- if we don't see meaningful progress on inflation next year, we will need to react
- Journey back to 2% will have some pain involved
- Very much monitoring balance sheet runoff impact on financial market functioning
- Does not have a recession in her forecast
US stocks are heading toward the close. The major indices are down on the day with the Dow industrial average outpacing the weaker S&P and NASDAQ indices:
- Dow industrial average -19 points or -0.05%
- S&P index -12.8 points or -0.32%
- NASDAQ index -107 points or -0.96%
- Russell 2000-14.17 points at -0.77%