MNI BRIEF: Fed’s Collins, Mester-Inflation Drop To Take Longer

It will take more time than previously believed for inflation to return to the Federal Reserve’s 2% target, Boston Fed President Susan Collins and Cleveland Fed President Loretta Mester said Tuesday.

“It’s going to take longer for us to see the extent of progress that I think is going to be necessary to change our policy stance,” Collins said during a Q&A.

Mester, for her part said it was too soon to determine whether disinflation seen last year would resume this year despite an April CPI report that was seen as benign.

“It’s going to take longer than I originally thought it would,” Mester said. Both policymakers said the Fed can be patient before deciding when to cut interest rates. (See MNI INTERVIEW: Demand Boom Keeps Fed Patient For Longer)