Fed’s Mester says inflation is higher than expected, need more confidence on trajectory

Mester not sounding like an interest rate cut is imminent.

Loretta Mester, president and CEO of Federal Reserve
Federal Reserve Bank Cleveland branch, speaking on “An Update From the Federal Reserve”

  • We want to get more information before we can say inflation is on a
    sustainable path to 2%
  • This year inflation
    is a little higher than expected
  • We want to be pretty
    confident inflation is on this downward trajectory
  • We have strong labor
    markets, solid economic growth
  • I still expect inflation to come down
  • If inflation isn’t moving down to 2% we could keep rates where they
    are for longer
  • At some point we will start to ease policy
  • We don’t have to ease
    policy in a hurry
  • Watching risks to both of the Fed’s mandates

This article was written by Eamonn Sheridan at www.forexlive.com. Source