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Central Banks

Mester Says Fed Can ‘Do Its Part’ for Economy by Curbing Inflation

  • Cleveland chief repeats FOMC resolve to get inflation to goal
  • Long-run course has implications for future health of economy
Bloomberg business news
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Federal Reserve Bank of Cleveland President Loretta Mester said the central bank is unable to do much about slow long-term economic growth but can “do its part” by curbing inflation. 

“While monetary policy cannot affect the economy’s long-term growth rate, it can do its part by returning the economy to price stability, which is necessary for the longer-run health of labor markets, the financial system, and the overall economy,” Mester said in the text of a speech in Dublin Tuesday.