Free Trial
US

Import Prices Set For A Further Drop

PIPELINE

$3B National Australian Bank 2Pt Launched

USDJPY TECHS

Bearish Outlook

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Mester Sticks To Hawkish Script

FED

Comments from Cleveland Fed President Mester (’22 voter) filtered out during the NY-Asia crossover, as the hawk reiterated the need for further rate hikes, stressing her desire for policy settings to become restrictive and remain there for some time.

  • Mester noted that there will be economic bumps along the way (expects unemployment to move higher, but not to 5%), flagging a resolute stance at the Fed when it comes to putting inflation back on the path to 2%, noting that now is not the time to be balancing risks
  • She stressed that interest rates will not be coming down next year (sticking to the higher for longer mantra), with the Fed’s focus being to set monetary policy for the U.S.
  • Mester also noted that the while Fed doesn’t set the value of the USD it needs to be aware of its impact on the U.S. economy.
  • Mester is of the opinion that the Fed is doing a pretty god job when it comes to communicating policy direction.
  • Finally, Mester pointed to a personal want re: discussions surrounding the potential sale of MBS, although noted that active discussions on the matter are not currently in play.
  • These comments won’t move the needle for rates pricing given Mester’s well-known hawkish views and a lack of fresh, meaningful information in the comments.
219 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Comments from Cleveland Fed President Mester (’22 voter) filtered out during the NY-Asia crossover, as the hawk reiterated the need for further rate hikes, stressing her desire for policy settings to become restrictive and remain there for some time.

  • Mester noted that there will be economic bumps along the way (expects unemployment to move higher, but not to 5%), flagging a resolute stance at the Fed when it comes to putting inflation back on the path to 2%, noting that now is not the time to be balancing risks
  • She stressed that interest rates will not be coming down next year (sticking to the higher for longer mantra), with the Fed’s focus being to set monetary policy for the U.S.
  • Mester also noted that the while Fed doesn’t set the value of the USD it needs to be aware of its impact on the U.S. economy.
  • Mester is of the opinion that the Fed is doing a pretty god job when it comes to communicating policy direction.
  • Finally, Mester pointed to a personal want re: discussions surrounding the potential sale of MBS, although noted that active discussions on the matter are not currently in play.
  • These comments won’t move the needle for rates pricing given Mester’s well-known hawkish views and a lack of fresh, meaningful information in the comments.