Fed, split by inflation, should forge on with rate hikes: Mester
A Federal Reserve policymaker on Wednesday staked out the hawkish argument for carrying on with U.S. interest rate hikes even while weak recent inflation readings have split opinions among her colleagues at the U.S. central bank. In an interview, Cleveland Fed President Loretta Mester said that while some price readings have fallen this year, expectations are more stable, adding that monetary policy must anticipate changes in the data and not react to temporary aberrations. Risks to the Fed’s current median forecast of one more rate hike this year and three next year “are balanced,” she added, as businesses weigh an improving global economy against uncertainty over the policies of President Donald Trump’s administration.
