Comments from Mester:
- Holding rates too long may erode public confidence in the economy and lead to worse economic outcomes
- Risks to interest rate policy that is "too inert", including financial stability.
"Over-reliance on mismeasured objects such as output gaps, unemployment gaps, or equilibrium real rates can lead to poor policy decisions" and "inertia need not be optimal."
No comments on the timing of rate hikes but yesterday she said a June hike should be on the table.
Nothing inspires confidence like higher mortgage payments and stocks falling on hike fears.
