Loretta Mester, president and CEO of Federal Reserve Bank Cleveland branch and her FOMC colleague Mary Daly, President of the San Francisco Federal branch both spoke on Tuesday.
Mester said:
- Three cuts this year is reasonable but is a ‘close call’
Daly was on a similar track:
- Three cuts is a reasonable baseline this year, not a promise
They both had plenty more to say.
M:
- Fed’s Mester: Still expects the Fed can cut rates later this year but not at next meeting
- More Mester: Seeing some slowing in the economy, but it is rebalancing
- Mester: Three rate cuts for 2024 is still a reasonable forecast
D:
- Fed’s Daly: Standing pat is the right policy for the moment
- More from SF Fed Pres.Mary Daly: When we say 2% is inflation goal, we mean it
These two are in contrast to what we heard last week:
- Fed’s Waller says may need to hold current rate for longer than expected, no rush to cut
- Waller’s remarks have pumped up the US dollar
- (ps still is too)
- More Fed’s Waller: The economy has supported the cautious approach by the Federal Reserve
- Still more from Fed’s Waller: If unemployment goes up no reason to panic
- Fed’s Bostic say he now anticipates only one rate cut this year
- If economy continues to be healthy, why would we cut rates
Is June on for a cut? Here’s the latest from Fed Watch:
This article was written by Eamonn Sheridan at www.forexlive.com. Source