Fed’s Mester: If economy meets forecasts, rate cuts are likely later this year

  • Mon pol is currently in a good place given outlook
  • Expects Fed will be able to lower rates gradually
  • Inflation may prove to be more persistent this year
  • Biggest mistake would be premature Fed rate cuts
  • Fed has luxury of holding steady while taking in more data

There’s been a persistent change in Fed language where they say cuts are possible ‘some time this year’ versus saying ‘around mid-year’ before. Take that for what it’s worth but June is 93% priced in.

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