Mester: Going To Wait Until The Sept Meeting To Decide Hike Size

Cleveland Fed President Mester comments in an MNI Webinar:

• On her stated view (in her prepares speech) of the path of the Fed funds rate: Think there's risks on both sides, have to make an assessment of whether demand is coming into better balance with supply...I need to see some compelling evidence that inflation is on the path to 2%
• Regarding decisions at any given meeting: To my mind it's better to focus on the path of interest rates and do we need to do more to get inflation under control
• On the September meeting hike size: I'm going to wait until the meeting, that's where those decisions are made. I think we have to get into positive territory in the real rate, we will have to do more
• On inflation expectations: Am going to be very attentive of medium/longer-term inflation expectations moving up; currently they are still consistent with the Fed's 2% goal. Under a risk-management approach, you get better outcomes if you take action on higher inflation rather than wait
• On current inflation: I'm not convinced inflation has peaked... [on next week's CPI report]: I'm waiting for the data just like all of you are