Fed's Mester: We can't expect last year's disinflation to continue
Source Fxstreet
According to Cleveland Federal Reserve (Fed) President Loretta J. Mester, inflation remains a challenge that the Fed needs to overcome, but rate cuts should resume later this year as long as the data gives the Fed enough room to operate.
Key highlights
- We cannot rely on the pace of disinflation last year to continue this year.
- Demand will moderate, and growth this year will not be as strong as last year.
- Expects a slowdown in employment growth.
- A slowing of employment growth is what the Fed needs to see in order to ease rates.
- Three rate cuts this year feels about right.
- Fed is in a really good spot, both on policy and the US economy.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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