By Michael S. Derby NEW YORK (Reuters) - Cleveland Federal Reserve President Loretta Mester said on Tuesday she is open to raising interest rates ...
Going to Great Heights: an interview on skydiving while skydiving | SaltWireNEW YORK - Cleveland Federal Reserve President Loretta Mester said on Tuesday she is open to raising interest rates again, potentially at the U.S. central bank's next meeting, if the current state of the economy holds, even as she acknowledged that a surge in long-term bond yields could change the monetary policy outlook.
But Mester, who does not hold a vote on the central bank's rate-setting Federal Open Market Committee this year, cautioned that what comes next for the Fed is still a moving target. The Fed kept rates unchanged at its meeting last month. Although policymaker projections issued at that meeting penciled in one more increase for the year, many traders believe that with inflation moving steadily back to the central bank's 2% target, it will be able to hold off on further tightening.
Mester said she expects inflation to return to 2% by the close of 2025. The latest Fed forecasts expect that to happen in 2026.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed's Mester open to another rate hike if economy stays on current pathCleveland Federal Reserve President Loretta Mester said on Tuesday she is open to raising interest rates again, potentially at the U.S. central bank's next meeting, if the current state of the economy holds, even as she acknowledged that a surge in long-term bond yields could change the monetary policy outlook. 'If the economy looks the way it did at the next meeting, similar to the way it looked at our recent meeting, I would do the further rate increase,' she told reporters in a conference call. But Mester, who does not hold a vote on the central bank's rate-setting Federal Open Market Committee this year, cautioned that what comes next for the Fed is still a moving target.
Read more »
Fed’s Mester Says Steady Economy Leaves Chance of November Rate Hike OpenFederal Reserve Bank of Cleveland President Loretta Mester said she would support another interest-rate increase at the Fed’s next policy meeting if the economy is performing about the same as at the time of the September gathering.
Read more »
Fed's Mester says one more U.S. rate hike may be neededFederal Reserve Bank of Cleveland President Loretta Mester said Monday that the U.S. central bank most likely isn’t done raising interest rates amid ongoing inflation pressures. “I suspect we may well need to raise the fed funds rate once more this year and then hold it there for some time as we accumulate more information on economic developments and assess the effects of the tightening in financial conditions that has already occurred,” Mester said in the text of a speech to a group in Cleveland. “But whether the fed funds rate needs to go higher than its current level and for how long policy needs to remain restrictive will depend on how the economy evolves relative to the outlook,” which is bounded by considerable uncertainty right now, the official said.
Read more »
Blue-Chip Bond Yields Hit Highest Since 2009 While Fed Teases HikeBlue-chip bond yields have surged to the highest level since 2009 as Federal Reserve members continue to point toward an additional interest rate hike this year and a higher-for-longer regime.
Read more »
Fed in a position to deliver a 'soft enough landing': StrategistFederal Reserve Chairman Jerome Powell has said that a soft landing for the U.S. economy is a 'primary objective' for the central bank. Some still have their doubts, but not F/m Investments CIO and President Alex Morris. Morris tells Yahoo Finance Live the Fed is facing a different set of problems than it did in the 2007-2008 financial crisis and that, as a result, officials are in a 'better position' to deliver a 'soft enough landing.' For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Read more »