Fed's Mester: Sees conditions for rate liftoff met by the end of 2022
We know know where Mester's dot is
Mester is a vote next year and said she sees the conditions for a hike in 2022. Of course that could certainly change but we know she's one of those dots now.
- Inflation risks on the upside exceed those on the negative
- Sees 5.5% GDP growth this year
- Sees 3.75-4.0% GDP growth in the US next year
- Inflation will be a little more than 2% in the next years
- Supports November taper that concludes in H1
- After liftoff, we'll need accommodative policy for a little while
- Sees unemployment around 4.75% at the end of this year and 4.0% at the end of 2022
GDP forecasts are notable, they've been coming down in the last month or two on supply chain issues.