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Fed’s Mester May Back Half-Point September Hike If Prices Don’t Cool

  • Quarter-point rise may be right if inflation eases, she says
  • Cleveland Fed head wants compelling evidence on cooling prices
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Mester Says Rate Hikes All Depend on Inflation

Federal Reserve Bank of Cleveland President Loretta Mester reiterated her support for raising interest rates by a half point in June and July and said she would back doing the same again in September if inflation is not retreating.

“I’m going to come into that September meeting and if I don’t see compelling evidence, then I could easily be a 50 basis-point in that meeting as well,” Mester said Friday during an interview with CNBC. “There’s no reason we have to make that decision today, but my starting point will be do we need to do another 50 or not.”