Free Trial

MNI BRIEF: Fed Could Hike 50bps If Inflation Worsens - Mester

(MNI) WASHINGTON

Federal Reserve Bank of Cleveland President Loretta Mester said Thursday the FOMC can raise interest rates in larger increments if inflation takes a turn for the worse.

"I'mveryopentolookingattheincomingdata,andiftherisksIpointedoutin my remarks -- theupsiderisks to inflationactuallymanifestthemselves -- thenwemayverywell have to go higher, holditlongeratthatpeakrate,orevenchange whatwedoatanyparticularmeetingintermsofthesize."

"We can move faster, and we can do bigger at any particular meeting. And really, it's going to be driven by what how the economy is evolving." (See: MNI: Fed's Peak Rate Looking Perkier As Jobs Boom-Ex-Officials)

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@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.