Fed's Mester says inflation too high but rate hike decision does not need to be made yet

Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term Bank of Cleveland President Loretta Mester speaking in an interview with Bloomberg TV.

• Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is too high
• The CPI report was uniformly negative
• We don't need to decide on rates today
• Says she is not seeing any convincing evidence that inflation has peaked
• At the July meeting, we'll talk about the policy path
• Tightening must be done carefully, purposefully
• Fed will need to extend well beyond the neutral rate
• The data on CPI does not suggest a rate hike in July any smaller than that in June

The ballistic CPI report on Wednesday morning from the US has prompted forecasts for a 100bp rate hike from the Federal Open Market Committee (FOMC) at the July meeting. The FOMC announcement is on July 27.

• Nomura has revised their FOMC rate hike call, +100bps (from +75) coming in July