Mester is speaking on her economic outlook and monetary policy before a virtual event of the Volatility and Risk Institute and the Center for the Global Economy and Business, NYU Stern School of Business.
Earlier:
says the FOMC should act more quickly than in the previous tightening episode
Now Q&A:
- FOMC still discussing its plan for balance sheet runoff
- Fed will take action to keep inflation under control and keep long-term inflation expectations anchored
- Fed balance sheet reduction will happen as the Fed removes accommodation via the funds rate
- primary tool for adjusting policy is the funds rate
- Fed may need to change the pace of b/s reduction if their is a concern over financial stabiliuty
