Mester's media tour continues on Bloomberg
- Sees inflation sustained at 2% over next 1-2 years
- Low productivity helps explain low wages
- Have seen acceleration of US inflation
- Positive outlook in US economy
- Global economy is healthy
I would like to know what would convince Mester (and the rest of the Fed) not to hike a third or fourth time this year. The bulk of the FOMC is consistent in calling for hikes but a third hike is only about 62% priced in for September and a fourth only 38%, so clear their is a disconnect and a credibility problem.