Cleveland Fed President Loretta Mester, in an interview with BloombergTV overnight, emphasized that March might be too soon to consider a rate cut, citing ongoing efforts to combat inflation.
Mester expressed her view that more evidence is needed before considering a reduction in interest rates. “March is probably too early in my estimation for a rate decline because I think we need to see some more evidence,” she stated,
The December CPI report released yesterday, according to her, is a clear indication that “there is more work to do,” necessitating the maintenance of restrictive monetary policy. Nevertheless, she reassured that the CPI report does not suggest progress in inflation stall out.
Mester also pointed out that the risks associated with monetary policy have become more balanced. The primary focus for this year, as she outlined, is to calibrate policy effectively to maintain healthy labor markets while continuing the process of bringing inflation back to the 2% target.
