2023-07-10 16:08:00
Cleveland Fed President Mester said the Fed will need to continue raising interest rates somewhat more to ensure inflation falls to its 2% target.
On the 10th, the governor gave a speech at an event at the University of California, San Diego. According to the pre-circulated manuscript, “the policy rate will need to rise somewhat further from current levels to ensure inflation returns to 2% in a sustained and timely manner. “My view is that there is. After that, we need to keep the policy rate on hold for a while as we gather more information on how the economy is developing.”
The Federal Open Market Committee (FOMC) left its target range for the federal funds rate unchanged at its June meeting. At the same time, he suggested that he sees two more rate hikes as appropriate this year.
Mester said his views were “in line with” the FOMC’s expectations. The next meeting of the FOMC will be held on the 25th and 26th of this month. Markets are widely expecting the Fed to resume rate hikes at the meeting.
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news-rsf-original-reference paywall">Original title:Fed’s Mester Says More Tightening Needed to Reach Inflation Goal(excerpt)
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