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Free AccessMester: We Should Discuss Selling Some MBS
Speaking in Q&A at the Economic Club of Pittsburg, Mester ('22 voter) doesn't materially expand on hawkish comments from Tuesday.
* We’re not in a recession right now, risks have gone up though.* I don't use yield curve as strong indicator of where economy is going
* Signs policy we've put in place is working on the demand side but that moderating demand is not yet impacting inflation. I need to see several months of inflation coming down [repeated from Tue].
* Given size of balance sheet, we should discuss selling some MBS – all Reuters
* On the latter, there is no context from headlines about the timing of sales. Mester has previously advocated selling MBS “in the future”, although Bloomberg does quote her in a later question that the balance-sheet size is to depend on demand for reserves.
To read the full story
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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.