Mester Notes Decision That

Cleveland Fed President Mester ('22 voter) tells BBG that the Committee doesn't have to make a decision today re: a 100bp rate hike when question on the matter.

• She flags retail sales & UoM inflation expectations as further inputs into July decision.
• Notes that today's CPI report was uniformly bad, stressing that inflation remains unacceptably high, with a need to make sure inflation turns the corner and is on a downward path. She highlights that there is more work to do and a need to continue on the tightening path.
• Notes that the Fed must be very intentional re: policy moves.
• Not seeing any convicning evidence that inflation has peaked.
• Expect the Fed will have to go well beyond the "neutral rate."
• Risk of recession has gone up, part of policy move is trying to normalise demand.