Loretta Mester, Cleveland Fed Big Kuhuna is speaking in NY, the headlines from here speech are here
Audience Q&A now
- US economy can stand a small rate rise
- Fed trying to be as clear as it can about its decisions
- Zero rates for too long could sap financial stability
- Inflation expectations are anchored
- Relatively confident inflation will move up over time
- Higher bank capital levels are a good thing
- Fed cares about global developments if they effect US
- Chinese growth will effect emerging markets, dollar
- Fed's QE was necessary, especially the first phase
- I'd like to QE tool available for the future
- She enters each FOMC meeting wit an open mind
- Not surprised by differing views among Fed officials
- Fed trying to be as transparent as possible on policy
- Expect market volatility around time of Fed liftoff
Headlines on Bloomberg
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OK ...so ... "Inflation expectations are anchored"
Anchors ... those are the things at the bottom of the ocean, right?
What is she really saying about inflation? ;-)