Loretta Mester of the Cleveland Federal Reserve stated that Friday’s statement was not sufficient evidence that inflation is at its peak. She supports aggressive interest rates and supported it.
“I believe that the Fed has proven we are on the verge of revising our policy in order to reduce inflation to our goal of 2%. In a CNBC interview, Mester explained that this is what the Fed has to do.The Exchange.”
“I don’t think I want to declare victory against inflation before seeing really compelling evidence of our actions beginning to bring down demand in better alignment with aggregate supply,” she said.
Mester was also present when the Bureau of Labor Statistics published that nonfarm payrolls rose by 390,000Importantly, May saw an increase of 0.3% in average hourly earnings versus a month prior, which is slightly lower than the Dow Jones estimate.
However, other data has shown that there is at least one more. rate of inflation increases has diminishedThe policymaker stated that she would need to observe multiple months of this trend for her to feel at ease.
Mester stated, “It is too early to predict that this’s going change our outlook or mine on policy.” “The No. “The No. 1 issue in the economy is very, very high levels of inflation. This level is well beyond acceptable levels and we need to keep that our primary focus moving forward.
According to recent statements by the Federal Open Market Committee, which sets rates, it appears that 50 basis point — or half-point — rate increases are likelyat the June-July meetings. Officials will evaluate then the effect of the tightening policy and other factors on the inflation picture. A basis point equals 0.01%.
Mester however stated that any pause in rate increases is unlikely. However, the size of these increases may be decreased.
“I will attend the September meeting if there is no compelling evidence.” [that inflation is cooling]She said that I could be easily at 50 basis points during the meeting. She said, “There is no reason why we should make this decision right now. My first question will be, do we need another 50? Or not, do I have compelling evidence to support the downtrend in inflation. We might be able to go 25. “I’m not the camp we believe we should stop at September,” says my opponent.
Mester’s statements were similar to Thursday’s Fed Vice Chair statement Lael BrainardCNBC was told by a source: “it’s very hard to see the case”Rate hikes will be paused in September. Her top priority was to stop inflation from reaching 40-year highs.