Comments on “monetary policy and communications” from Cleveland Federal Reserve President Loretta Mester:

  • More progress needed on jobs, expects to see it
  • ‘Considerable time’ focuses on calendar, not data (she’s said this before)
  • Wants to tie Fed guidance to economic projections
  • ‘Important not to react’ to weak August payrolls
  • Would prefer to reformulate FOMC forward guidance
  • Live feed here
  • She will host a Q&A afterwards

Markets are keeping a close eye on Mester because she’s new and we don’t have a sense of which side of the hawk/dove spectrum she sits on. She came from the Philly Fed, led by uber-hawk Plosser.

Loretta Mester September 24, 2014

Mester dyed her hair to match the backdrop — nice touch. Or maybe an ode to the rust in Cleveland?


  • Sees 2.5% GDP for long-run growth
  • Notes her forecast of longer-run growth is higher than Fed median
  • Projecting a faster return to full employment than some of her colleagues

She sounds a touch hawkish.

Update 2: Nothing notable in the audience Q&A.