Central Banks
Fed’s Mester Says Interest Rates Are at or Near the ‘Holding Point’
- Official reiterates sustained high yields could affect policy
- Mester anticipates keeping rates at peak for some time
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Federal Reserve Bank of Cleveland President Loretta Mester said the US central bank is close to wrapping up its aggressive tightening campaign, but signaled she still favors raising rates once more this year based on how the economy evolves.
“Regardless of the decision made at our next meeting, if the economy evolves as anticipated, in my view, we are likely near or at a holding point on the funds rate,” Mester said Friday at an event organized by the Manhattan Institute.