Fed's Mester

She says:

  • Dont' want to over-react to weak inflation when more data will arrive before September FOMC
  • Fed telegraphed gradual rate hike path. Bulds in spats of volatility in data
  • Watching easy financial conditions, but not directly responding to it with policy
  • Factors are in place for US inflation to rise
  • Dollar partially reflects trading partners doing better
  • She'll be scrutinizing inflation data
  • Instinct says inflation reflect idiosyncratic causees
  • Stock market partially reflects earnings and low rates