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Mester: We Should Discuss Selling Some MBS

FED

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.

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