More from Fed's Mester

Cleveland Fed president Loretta Mester is answered some questions:

  • Not yet thinking about adjusting monetary policy.
  • Wants to see more progress unemployment
  • When time comes, Fed should start with tapering model used after last recession and adjust if needed.
  • Fed should be methodical in approach to tapering and communicate with the public to avoid surprises.
  • Will get a better read on labor force participation rate as schools open and enhanced unemployment benefits expire.
  • Economy has picked up quite a bit, but were not done with pandemic yet.
  • We have seen inflation expectations move up but not to levels that are concerning.
  • Expects inflation around 3% 3.5% before it goes down to 2% next year.
  • Elevated prices are caused by supply constraints.

Mester is not a voter this year but will be voting in 2022.