Reply To: Cleveland Fed Mester Says Interest Rates Above Four as Appropriate


Cleveland Fed President Loretta Mester speech to Massachusetts Institute of Technology (from prepared text)

“Business contacts tell us that #supplychain disruptions remain a challenge
Further rate hikes will be needed, and restrictive policy for some time
Rise in inflation expectations since last year has been concentrated in short-term
further rate hikes will be needed, will need restrictive stance for some time
in uncertain environment, it can be better to act more aggressively
pre-emptive action can prevent worst-case outcomes
will be very cautious, will need several months of declines to conclude inflation has peaked
will guard against being complacent that longer-term inflation expectations are well-anchored
costs would be high if we were to fail to take decisive action
unacceptably high inflation is key challenge facing economy
price stability is necessary to ensure healthy labor market conditions
fed committed to using its tools to bring inflation back down to 2% goal, will be resolute
energy prices could move higher again; rent, shelter costs will likely keep inflation elevated for some time
inflation pressures remain intense, wage pressures are contributing
not clear that longer-term inflation expectations won’t move up again
large and rising level of dispersion suggests inflation expectations not as well anchored as would hope
more to come