NEW YORK (Reuters) - Federal Reserve policymakers are publicly expressing different views on monetary policy because of the “cross currents” in the economic data, Cleveland Fed President Loretta Mester said on Thursday.
While Fed Chair Janet Yellen and most U.S. central bankers, including Mester, expect to raise interest rates this year, others including two Federal Reserve board governors have urged patience. Mester said the Fed is trying to be as clear as it can on its rationale for policy.
“I‘m not surprised that there are different views on policy at this point,” she said of the decision to raise rates after almost seven years near zero. Nor is she surprised, she said, that investors are less certain about the Fed’s so-called “reaction function” to economic data as it emerges from the financial crisis.
Reporting by Jonathan Spicer