Mester in the Q&A now
- Job growth is strong enough to lower the US jobless rate
- Still sees gradual rate rises as appropriate
- I haven't seen enough to change my modal outlook
Headlines on Bloomberg
And more (via Reuters):
- Asked about earlier plans for 4 rate hikes this year, says has not changed US outlook
- "I like that we are" gradually raising rates, but would respond to slowdown
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Mester digging her heels in on the 4 (or more) hikes in 2016 call. I think that's nuts. But, she has wisely left herself an out: "would respond to slowdown".
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More comments:
- Skeptical of negative interest rates in the US
- Likely not that effective
"Likely not that effective'. If she's basing her comment on the currency impact I'm sure she is right ... just ask BOJ head Kuroda :-D
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And, still more:
- Policy will not reflect market expectations, which are apt to move
- Does not want to take action that would be 'shocking' to markets
(Take that, Kuroda!)
- Federal Reserve should not be a mirror to financial markets
- Shrinking balance sheets removes policy accommodation
