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MNI BRIEF: Mester Says Inflation Still Too High, Jobs Strong

(MNI) WASHINGTON

The Fed's interest rate hikes are helping to moderate demand and alleviate some of the imbalances that have boosted price pressures but inflation is still "too high" while the job market stands strong, Federal Reserve Bank of Cleveland President Loretta Mester said Friday.

Though the Labor Department reported Friday a three-tenths jump in unemployment last month, the 3.8% jobless rate remains low, Mester said in remarks prepared for a joint ECB-Cleveland Fed inflation conference. She told CNBC at Jackson Hole last week that she had penciled in two more hikes for the year in her June forecasts and the Fed had so far delivered one of them.

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The Fed's interest rate hikes are helping to moderate demand and alleviate some of the imbalances that have boosted price pressures but inflation is still "too high" while the job market stands strong, Federal Reserve Bank of Cleveland President Loretta Mester said Friday.

Though the Labor Department reported Friday a three-tenths jump in unemployment last month, the 3.8% jobless rate remains low, Mester said in remarks prepared for a joint ECB-Cleveland Fed inflation conference. She told CNBC at Jackson Hole last week that she had penciled in two more hikes for the year in her June forecasts and the Fed had so far delivered one of them.

Keep reading...Show less