Fed's Mester says further rate hikes will be needed, and restrictive policy for some time

Cleveland Fed President Loretta Mester speech to

Massachusetts Institute of Technology (from prepared text)

• further rate hikes will be needed, will need restrictive stance for some time
• in uncertain environment, it can be better to act more aggressively
• pre-emptive action can prevent worst-case outcomes
• will be very cautious, will need several months of declines to conclude inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term has peaked
• will guard against being complacent that longer-term inflation expectations are well-anchored
• costs would be high if we were to fail to take decisive action
• unacceptably high inflation is key challenge facing economy
• price stability is necessary to ensure healthy labor market conditions
• fed committed to using its tools to bring inflation back down to 2% goal, will be resolute
• energy prices could move higher again; rent, shelter costs will likely keep inflation elevated for some time
• inflation pressures remain intense, wage pressures are contributing
• not clear that longer-term inflation expectations won't move up again
• large and rising level of dispersion suggests inflation expectations not as well anchored as would hope

more to come

"Pre-emptive" action. FFS these Fed parrots were screaming 'transitory' for months and months. We got denial, not pre-emptive. Now they appear to be going in the same but opposite direction. As signs emerge of inflation pressures dribbling lower they are still promising further aggressive hikes. If you have a curve you can be sure the Federal Reserve is well behind it.