- Debate in July is between 50 bps and 75 bps rate hike
- We want to see US rates above 4% next year
- Rate hikes are very necessary to get inflation down
Mester is talking up inflation risks and saying that US inflation could rise further from current levels. As such, she is pushing a more hawkish narrative going into next month's meeting. That said, Fed fund futures have already priced in ~84% probability of a 75 bps rate hike, so there's that.