Fed’s Mester Says Jobs, Inflation Outlook Justify Rate Hike
- Cleveland Fed chief explains her dissent at FOMC last week
- Sees risks from delayed rate increase amid resilient expansion
Loretta Mester
Photographer: Marlene Awaad/BloombergThis article is for subscribers only.
Federal Reserve Bank of Cleveland President Loretta Mester said continued gains in the labor market this year, her outlook for higher growth and inflation, and receding global risks prompted her to call for an interest-rate increase when policy makers met last week in Washington.
“If we continue to delay even as we make further progress on our inflation goal and labor markets continue to tighten, we risk having to undertake a considerably steeper policy path later on,” Mester said in the text of a speech she is scheduled to deliver Wednesday in Cleveland.