More again from Fed's Mester: Politics does not enter into Fed decision making

Author: Eamonn Sheridan | Category: Central Banks

We had comments on Federal Reserve monetary policy and the economy from Mester earlier

More again (these via Reuters)
  • Does not think Fed is behind the curve
  • If Fed does not react to data in systematic way, could hurt its credibility
  • Every Fed meeting is a live meeting
  • When Fed has tried to overheat economy in the past, the outcome has 'not been that good'
  • Politics does not enter into Fed decision making
  • November will be an active meeting
  • Sees US unemployment rate falling to 4.5 percent over the next couple of years
  • Would not say participants struggled to understand each others' views at FOMC meeting
  • Economic data has corroborated her outlook, felt there was compelling case to raise rates in September
  • Status quo is attractive, but waiting until all data points line up risks putting Fed behind the curve
  • There is a very compelling case to raise rates now while keeping to a gradual path
  • With such low rates, needful to be mindful of search for yield
  • No imminent concerns on financial stability at the moment
  • Commercial real estate risks have begun to flatten out
  • Election uncertainty not an issue to her

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