More from Fed's Mester: Expect unemployment to end year in 7% to 8% range

Author: Greg Michalowski | Category: Central Banks

More from Cleveland Fed Pres. Loretta Mester

  • US inflation is lower than the Fed's goal but will eventually rise if recovery continues
  • She expects US unemployment rate to end year in 7% to 8% range
  • US economy is still far from achieving both inflation and employment goals
  • Fiscal and monetary stimulus is meant to limit longer run damage to economy but recovery is still fragile
  • The longer crisis goes on the more disruptive it will be; some people will have to find work in new areas
  • Monetary policy is well calibrated and asset purchases are providing accommodation
  • Too early to say if more asset buying is needed
  • Sees inflation slightly above 1% year-end
  • It's still a fragile recovery
The Fed's projections for end of year unemployment came in at 7.6% in their central tendencies projections after the last Fed meeting. PCE inflation is estimated at 1.2%.  As such, Mesters estimates are in line with those projections.
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