Cleveland Fed president Loretta Mester

Mester:

  • labor markets are very strong
  • rates are at neutral, we are in a good spot
  • The Fed can wait and let the economy tell us how it's doing
  • Important for Fed to hit its 2% inflation target
  • Right now I am comfortable with watchful waiting
  • Says she is "not there" in response to a rate cut question
  • IOER tweak was a technical adjustment not policy signal
  • Does not have impression that bank reserves are getting scarce
  • Fed is always striving to not surprised financial markets