Cleveland Fed President Loretta Mester said yesterday that Russia’s invasion of Ukraine could push inflation up higher. “The unfolding event has implications for the economic outlook, adding upside risk to inflation even as it puts downside risks to the growth forecast,” she said.
“The challenge facing Fed policymakers is how to recalibrate monetary policy, reducing the accommodation from the emergency levels needed earlier in the pandemic in order now to get inflation under control and at the same time sustain the expansion and maintain healthy labor markets,” Mester added.
