Mester answers questions:
Don’t want to over-react to weak inflation when more data will arrive before September FOMC
Will be scrutinizing inflation data
Fed telegraphed gradual rate hike path. Builds in spats of volatility in data
Watching easy financial conditions, but not directly responding to it with policy
Factors are in place for US inflation to rise
Dollar partially reflects trading partners doing better
Stock market partially reflects earnings and low rates
inflation reflect idiosyncratic causes