Central Banks
Fed’s Mester Says More Restrictive Policy Needed for Longer
- Policy maker says several months of falling inflation needed
- Fed will be resolute in putting inflation on path to 2%
Loretta Mester
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Federal Reserve Bank of Cleveland President Loretta Mester said further interest-rate increases are needed to stamp out stubbornly high inflation and officials will need to keep restrictive policy in place for longer to prevent inflation expectations from becoming untethered.
“While this has been a relatively fast pace of tightening, given the current level of inflation and the outlook, I believe that further increases in our policy rate will be needed,” Mester said Monday in prepared remarks for an event organized by the Massachusetts Institute of Technology Golub Center for Finance and Policy.