Economics
Fed’s Mester Not Keen on Half-Point Hike; Bostic’s Options Open
- Mester supports faster pace of rate increases than last cycle
- ‘Every option is on the table’ for size of rate hike: Bostic
Loretta Mester
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Federal Reserve Bank of Cleveland President Loretta Mester and her Atlanta counterpart Raphael Bostic said all options are on the table for the size of policy makers’ first interest-rate increase in March, but Mester doesn’t see a “compelling case” for a 50-basis-point hike.
“I don’t like taking anything off the table,” Mester said in response to a question on whether a half percentage-point increase would be appropriate next month. “I don’t think there is any compelling case to start with a 50-basis-point” move, she said in the virtual seminar hosted by the European Economics and Financial Centre.