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? ;-)