The Federal Reserve needs to raise interest rates further because inflation is now expected to be above the Fed’s target for four years, Cleveland Fed President Loretta Mester said Monday.
... The Federal Reserve needs to raise interest rates further because inflation is now expected to be above the Fed’s target for four years, Cleveland Fed President Loretta Mester said Monday. The Cleveland Fed president said that “a slightly higher policy rate” would get the benchmark rate up to a level where the next move could either be a rate hike or a rate cut.
The big picture view is that the U.S. economy has shown more underlying strength than anticipated earlier this year and inflation has remained stubbornly high, “with progress on core inflation stalling,” Mester said.Most economists expect the Fed to raise its benchmark rate by 25 basis points to a range of 5.25%-5.5% after its meeting in two weeks.