Federal Reserve Bank of Cleveland leader Loretta Mester said Friday she wasn’t surprised by the latest round of strong U.S. inflation data, which she saw as another reminder the central bank still needs to raise rates further to reduce the pressures that are pushing prices higher.
“We just need to see all those prices coming back down and we haven't seen that sustainably yet,” Mester said.at the last Fed meeting, in opposition to her colleague’s support of 25 basis points. Mester does not have a vote on this year’s rate-setting Federal Open Market Committee meetings due to annual rotation of regional Fed leaders on that panel.
“I still think that this focus on 50 [basis points] versus 25 [basis points] at a meeting kind of misses the bigger picture, which is, there are inflationary pressures in the economy, the level of inflation is still too high, and it's going to take more on the monetary policy side to get inflation down,” Mester said.
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