More from Federal Reserve Bank of Cleveland President Loretta Mester.
Earlier:
More:
- Balance sheet runoff equates to about 50 basis points of tightening over time
- Inflation is really hurting a lot of people
- Right now inflation is the big risk
- I see more persistence in inflation and see rates rising higher than the median of fed policymakers
- We have more work to do to get inflation on 2% path
- We don't quit until we get inflation down to 2%
- Selling some MBS eventually would be a good thing in my view
- Money supply is not a key thing I look at, hasn't been a reliable indicator of inflation
- Fed will use its tools to get to inflation target, don't need fiscal policy to tighten to make that happen
- We will keep at it until we do so
- It's going to take a while to get inflation down
- We will not be cutting rates next year at all
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Mester going fully gung-ho, nominates herself as more hawkish than many other FOMC members.
USD/JPY update, back above 145. I commented earlier on intervention risks above 145 and how a test to 145.70 looks nevertheless inevitable.
