Cleveland Fed president Loretta Mester speaks in Frankfurt
- Current outlook is one of the most favourable in a long time
- Rate hikes can be a possible defense against financial stability risks
- Financial system resilience is the first line of defense
- May need monetary policy to ensure financial stability
Mester is speaking on macroprudential policy as well, so there is a quite a number of points touching on financial risks. Not much else in terms of monetary policy it seems. There will be a Q&A session later though.
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