Comments from Cleveland Fed President Mester on Fox Business:
- Timing of lift off will depend on economic data
- US economy is on a very firm footing
- Data supports view of acceleration in US economy
- US has made considerable progress on hiring
- Oil price drop a net positive for the US
- Fed has no predetermined plan on pace of rate rise
The first half of the year would mean before June. That comment isn’t a big surprise and she did a nice job emphasizing data dependency.
For me, what stands out is the oil comment. That means the Fed is going to look through disinflation this year and hike anyway — for better or worse.