Economics
Fed's Mester Says an Interest-Rate Cut Would Be ‘Bad Policy’
- Inflation target can be achieved by holding rates steady
- Mester says hiring workers a bigger worry for firms than trade
Loretta Mester
Photographer: Marlene Awaad/BloombergThis article is for subscribers only.
For Loretta Mester, returning inflation to the U.S. central bank’s 2% target requires restraint more than drastic action.
In an interview with Bloomberg News, the president of the Federal Reserve Bank of Cleveland dismissed the notion that policy makers should cut interest rates to raise inflation. Instead, officials should simply be careful not to react too quickly when prices move back up again, as she expects them to later this year.