Economics
Fed’s Mester Warns Against Declaring Early Victory on Inflation
- Repeats Fed rates should be above 4% by early next year
- Wants to see inflation readings decline over several months
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Federal Reserve Bank of Cleveland President Loretta Mester repeated that she thinks the US central bank needs to get rates above 4% by early 2023 and leave them there for some time to cool the hottest inflation in nearly 40 years.
Mester also reiterated that she does not expect the Fed to cut rates next year, noting that policy makers need to keep inflation expectations from becoming unanchored.