Economics
Fed’s Mester Backs Half-Point Rate Hikes in June and July
- ‘Faster pace’ of increases may be needed if prices don’t cool
- Says needs to see ‘several months’ of lower inflation readings
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Federal Reserve Bank of Cleveland President Loretta Mester backed raising interest rates by half percentage points at the central bank’s next two policy meetings in order to tamp down surging inflation.
“Unless there are some big surprises, I expect it to be appropriate to raise the policy rate another 50 basis points at each of our next two meetings,” Mester said Friday in prepared remarks for a virtual appearance at the International Research Forum on Monetary Policy.