Reply To: Fed Vice Chair Brainard says Slower Pace of Rate Increases Probably Soon


Cleveland Fed President Mester (FOMC voter) said in a CNBC interview that the Fed is “Not anywhere near to stopping rate hikes though”

“I do think we need to get into restrictive territory. Right now we are barely there”
Makes sense to slow down a bit the pace of rate hikes
Can it now be very deliberate in setting policy
Need to be more judicious and bouncing risks
Not anywhere near to stopping rate hikes though
We’ve had some good news on inflation
need more good news on inflation and sustained good news
Very grateful we are seeing some encouraging signs on inflation
Question is how do we calibrate policy to get back to 2% inflation goal
Getting back to 2% will take some time
Rate path will depend on the economy
We are moving into a different cadence on the policy, letting data guide us
I will be listening to my contacts, as their feedback is more forward-looking
I think we can slow down from 75 at December meeting
But we need to let economy tell us going forward the pace of hikes after that
if we don’t see meaningful progress on inflation next year, we will need to react
Journey back to 2% will have some pain involved
Very much monitoring balance sheet runoff impact on financial market functioning
Does not have a recession in her forecast