Fed's Mester: Raising rates now will prolong US economic expansion

Author: Eamonn Sheridan | Category: Central Banks

Cleveland Federal Reserve President Loretta Mester speaking. Mester is a voter this year on the FOMC, and dissented from the 'hold' decision at the September meeting (she was one of the three dissenters).

  • Wanted September rate hike due to Fed's progress on jobs and inflation mandate and expectation of further progress
  • Not raising rates risks steeper policy path later on, which could cause recession
  • Raising rates now will prolong US economic expansion
  • Policymakers should not discard past, think this time 'completely different'
  • Says fundamentals of US economy remain sound
  • US economy has shown it is resilient to shocks
  • Says she expects US economic growth at or above 2 pct the next two years, inflation to return to 2 pct target
  • Says expects weak business investment to pick up with further US economic growth
  • Says labor market at full employment, expects it to continue to tighten

Headlines via Reuters. These from the text of her prepared remarks. 

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