Fed’s Mester Sees Rate Cuts This Year If Inflation Keeps Cooling
- Mester: will gain confidence if inflation slowdown continues
- Says Fed can maintain restrictive level if inflation stalls
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Federal Reserve Bank of Cleveland President Loretta Mester said that the central bank should be able to start cutting rates later this year, though she first wants to see more evidence that inflation is cooling further.
The economy and monetary policy are in a good place right now, Mester, a voting member of the Federal Open Market Committee this year, said Thursday in prepared remarks for a virtual speech at the European Economics and Financial Centre. Price gains slowed significantly last year, but that pace of disinflation may not continue this year, warranting careful vigilance from policymakers, she said.