Loretta Mester, President of the Federal Reserve Bank of Cleveland is speaking on her outlook for the economy and monetary policy
Headlines via Reuters: :
- says plans will be finalized for ending balance sheet runoff and completing balance sheet normalization 'at coming meetings'
- says 'we plan to continue to use our current operating framework for implementing monetary policy'
- says Fed balance sheet will be larger than it was before 2008 financial crisis
- says Fed will make balance sheet plans and rationale known to public in a timely way
- says US economy will maintain good performance in 2019, though growth will slow
- says economy will make up 1st-quarter slowdown provided US avoids government shutdown
- says inflation likely to move below 2 pct in first part of year due to lower energy prices, but trend inflation essentially at Fed target
- says monetary policy does not appear far behind or ahead of the curve
- says fully supported January FOMC decisions
- Fed now in wait & see mode
- interest rates may need to rise a bit if her outlook projections are hit
more to come
Speech will be followed by a Q&A with media and also with audience