Cleveland Fed President Loretta Mester told Reuters, “I would need to see monthly numbers coming down in a compelling way before I would want to conclude we could now rest” on raising interest rates.
“The risks to inflation are skewed to the upside and the cost of allowing that inflation to continue is high,” she said, an argument for the Fed “doing more upfront rather than waiting.”
“I don’t think it (inflation) will get back to 2% next year. But it will be well on its way, in the range of two and half percent but moving in the right direction,” she said. “And given where the economy is and all the factors affecting inflation that are outside of our realm, that is acceptable to me.”
