Mester's media tour continues on Bloomberg

  • Sees inflation sustained at 2% over next 1-2 years
  • Low productivity helps explain low wages
  • Have seen acceleration of US inflation
  • Positive outlook in US economy
  • Global economy is healthy

I would like to know what would convince Mester (and the rest of the Fed) not to hike a third or fourth time this year. The bulk of the FOMC is consistent in calling for hikes but a third hike is only about 62% priced in for September and a fourth only 38%, so clear their is a disconnect and a credibility problem.