Fed’s Mester: Says she’s likely to favor hike at next meeting if current situation holds

  • Likely to favor hike at the next meeting if the current economic situation holds
  • Long-term yield rise will affect mon pol outlook
  • Fed likely at or near peak for interest rate target
  • Higher long-term rates will moderate growth
  • Yields up on a number of factors, including changed outlook on growth
  • Doesn’t see a rate cut happening any time soon
  • Expects to hit 2% inflation by end of 2025

10-year yields are up 60 basis points from late August, that’s doing a lot of tightening and will keep the Fed from needing to tighten more next year.

This article was written by Adam Button at www.forexlive.com. Source