Central Banks
Fed’s Mester Says Disinflation Will Take Time, Praises Progress
- Current funds rate “positions us well,” Cleveland chief says
- Mester says policymakers must be nimble, citing uncertainty
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Federal Reserve Bank of Cleveland President Loretta Mester said that while inflation has cooled, it’ll take time for it to fully return to the central bank’s 2% target.
“Inflation has been running well above the Fed’s goal for more than two years and while it’s still above our 2% goal, there’s been discernible progress on inflation even while the overall economy has remained relatively strong,” Mester said Thursday in opening remarks at the bank’s Financial Stability Conference. “It’s gong to take some time to get inflation back down to 2%.”