Cleveland Fed Pres. Loretta Mester
- July inflation report was welcome news
- Powell's speech was strong and right
- We really have an imbalance in supply and demand and we're working on the demand side
- European situation may indicate that gasoline prices won't keep retreating
- We need to be cautious in thinking inflation has peaked
- I think Powell delivered a strong message
- We're not predicting recession but expect below-trend growth this year and next
She's certainly not walking back anything Powell said but the bit about below-trend growth is important. To me, all the hawkish Fed talk is predicated on that soft-landing scenario. If there's a real recession then there's a strong belief out there that the Fed will truly pivot.