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. 


By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose