July 13, 2022 22:48 GMT
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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.