Cleveland Fed president cautious about interest-rate hikes

  • Cleveland Fed President Loretta Mester says it’s too soon to conclude that inflation has stalled
  • Mester believes that the Fed should hold rates steady until there is evidence of further easing of price pressures
  • She expects interest rates to slow economic activity and bring inflation down
  • Mester suggests that policymakers should consider increasing rates if inflation doesn’t show progress
  • Fed Chair Jerome Powell is less confident about the outlook for inflation
  • Labor Department’s consumer-price index for April will provide key data
  • Mester believes that the Fed’s current policy stance is in a good place to deal with risks
  • She is cautious about raising rates due to the potential for instability in the financial system
  • Mester emphasizes the importance of inflation expectations in determining policy decisions
  • She expects interest rates to continue slowing economic activity while reducing inflation

Cleveland Fed President Loretta Mester has stated that it is too early to determine whether inflation has stalled and believes that the Federal Reserve should maintain steady interest rates until there is evidence of further easing of price pressures. Mester expects that interest rates are high enough to slow economic activity and bring inflation down. However, she suggests that policymakers should be prepared to consider increasing rates if inflation does not show progress. Fed Chair Jerome Powell has expressed less confidence in the outlook for inflation, leaving the Fed uncertain about the timing of any interest rate cuts. The Labor Department’s consumer-price index for April will provide important data for assessing inflation. Mester believes that the Fed’s current policy stance is well-positioned to address a range of risks, but she is cautious about raising rates due to concerns about potential instability in the financial system. She emphasizes the significance of inflation expectations in determining policy decisions. Mester expects that interest rates will continue to slow economic activity while reducing inflation.

Factuality Level: 7
Factuality Justification: The article provides a detailed and factual account of statements made by Cleveland Fed President Loretta Mester and Federal Reserve Chair Jerome Powell regarding inflation, interest rates, and economic outlook. The information is presented objectively without sensationalism or bias. The article includes relevant quotes and data to support the discussion on monetary policy and inflation expectations.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of the Federal Reserve’s stance on interest rates, inflation, and economic outlook. It includes quotes from Fed officials and discusses various factors influencing their decisions. The information is relevant, focused, and supported by evidence, making it a valuable source for understanding current economic trends.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the Federal Reserve’s stance on interest rates, which has implications for financial markets and companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification:
Key People: Loretta Mester (Cleveland Fed President), Jerome Powell (Federal Reserve Chair)

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