Fed's Mester says interest rate hikes are not coming any time soon
Federal Reserve Bank of Cleveland President Loretta Mester speaking in an interview with CNBC.
- a lot of the increase inflation is tied to COVID-19, whether it's to
demand or supply
- as asset purchases wind down, will have time to assess inflation,
employment
- says she revised up inflation forecast for this
year
- she expects bottlenecks to last longer than
originally expected
- will see inflation readings come back down
next year
- if we don't see inflation coming down next
year, will need to reassess
- says baseline forecast is for inflation to come down, but
there are upside risks
- says so far medium and longer run inflation
expectations are consistent with 2% inflation goal
- some house price increases are a covid
effect; not a reason to change monetary policy
- we've met test for taper
- fed policy is well-calibrated to outlook
- very comfortable with where policy is right
now
- banking system is quite healthy
- Q3 GDP will be weaker than 1h, but still
expect US GDP to grow 5% to 6% this year
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