Cleveland Fed President Mester in media Q&A.....>

FED: Cleveland Fed President Mester in media Q&A indicated there's no immediate

need to issue stronger forward guidance as markets understand FOMC intends to

keep rates low for a long time.

- On YCC: It's useful as an addition way to reinforce forward guidance on the

short end, but implementation and the exit strategy are still being debated and

she hasn't made up her mind. With markets on the same page about low rates for

some time, "We don't need to reinforce forward guidance at this point." 

- On deflation risk: "Whenever you have inflation below target, you have to be

concerned that inflation expectations are moving down." 

- Balance sheet size is about 40% of GDP, and we have room to grow it. "That's a

tool that's been shown to work."