Free Trial

REFILE: Mester: Decision Doesn't Have To Be Made Today, Must Act

FED

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.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.