Cleveland Fed Pres. Mester: There is a little more work for the Fed to do on inflation

Cleveland Fed Pres. Mester is back on the wires in a interview on Yahoo finance:

  • January PCE data was not too surprising
  • January PCE reading does not change view that inflation is going downward
  • There is a little more work for the Fed to do on inflation.
  • It’s all about risk management until we get to 2% inflation goal
  • monetary policy is restrictive, demand should cool.
  • We can’t rely on pace of disinflation last year to continue this year
  • Demand will moderate, growth this year will not be as strong as last year
  • Does not want to focus on timing of the rate cut but the data
  • Expects some slowdown in employment growth
  • That slowing in employment growth is what we need to see to ease policy
  • We do need to be more confident that inflation is on that downward path
  • Baseline is we will see moderation in the labor market but it will still healthy
  • Need to see continued disinflation
  • Baseline forecast of three rate cuts still seems about right
  • Economy and monetary policy is in a good spot

Cleveland Fed Pres. Mester is a voter this year.

This article was written by Greg Michalowski at Source