Speaks from Florida. She is a FOMC voter in 2016
Cleveland Fed President Loretta Mester is speaking from sunny Florida.
- Premature to change rate outlook
- Fed rate path to depend on economy and the outlook
- Backs a gradual approach to fed tightening
- US labor market is solid/income healthy
- Market volatility and cheaper oil poses risks
- US economy can work through this rough patch
- Expects inflation to return to 2% in medium-term.
- Longer inflation expectations are relatively stable
- headline inflation to stay lower for longer
- Must consider implications of China for global growth
Marching down the center of the road with her remarks with a leaning toward keeping the tightenings on the table (premature to change rate outlook which implies 4 in 2016). At least she says that - she may not believe it though. Will be watching for any Q&A.
