Cleveland Fed President Loretta Mester said yesterday, “we’re at a point where we’re going to enter a restrictive stance of policy. At that point, I think it makes sense that we can slow down a bit the … pace of increases.”
“We’re still going to raise the funds rate, but we’re at a reasonable point now where we can be very deliberate in setting monetary policy,” she added.
“I think we can slow down from the 75 at the next meeting. I don’t have a problem with that, I do think that’s very appropriate,” Mester said. “But I do think we’re going to have to let the economy tell us going forward what pace we have to be at.”
“Right now my forecast is that we’re going to see some real, good progress on inflation next year,” Mester said. “We won’t be back to 2%, but we’ll see some meaningful progress next year. But if we don’t see that, then we’re going to have to make sure our policy really reacts to the incoming information. So I can’t tell you today what the path going forward will be.”