Reuters logo
Fed's Mester unmoved by weak U.S. inflation
June 23, 2017 / 6:13 PM / 6 months ago

Fed's Mester unmoved by weak U.S. inflation

CLEVELAND, June 23 (Reuters) - One of the Federal Reserve’s more hawkish policymakers said on Friday that recent inflation weakness was likely temporary and it should not delay another interest-rate hike this year, even though there is no “immediate need” to tighten policy.

“I don’t think there is an immediate need to do something, I don’t think we are behind the curve, but I do think this gradual reduction of accommodation ... makes sense to me,” said Cleveland Fed President Loretta Mester.

Asked what would dissuade her from backing another rate hike and the beginning of shedding bonds this year, she told reporters: “I’d have to see that there is really a sharp decline in demand ... coupled with weak inflation data.”

Reporting by Jonathan Spicer; Editing by Chizu Nomiyama

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below