Economics
Mester Says Fed to Pare Back Policy Support to Curb Inflation
- Accommodation reduction will still sustain expansion, she says
- Economists like Summers skeptical Fed can avoid hard landing
Loretta Mester
Photographer: Marlene Awaad/BloombergThis article is for subscribers only.
The Federal Reserve will roll back pandemic policy support in a way that will help cool the hottest inflation in decades but still support economic growth and jobs, Bank of Cleveland President Loretta Mester said.
“Our intent is to reduce accommodation at the pace necessary to bring demand into better balance with constrained supply in order to get inflation under control while sustaining the expansion in economic activity and healthy labor markets,” Mester said in remarks prepared for delivery at an event organized by the University of Akron on Thursday.