Comments from Federal Reserve's Mester
Quick Headlines via Reuters :
- Expects US. economy to overcome market turbulence and regain footing
- Recent market moves do not change US outlook but there are risks
- Only a steeper, longer drop in stocks could dampen US economic outlook
- US economy 'solid' due to healthy jobs and income growth
- Expects labor market improvement, lower unemployment this year
- Oil drop means lower US inflation for longer than previously thought
- Says might take longer to hit 2 pct inflation target
- Surprisingly high oil production means lower oil for longer
- Federal Reserve policy now well-calibrated to risks
- Expects rates to rise gradually over time
- End portfolio reinvestments only after rates up to 1 pct or so
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Loretta Mester is President and Chief Executive Officer of the Cleveland Fed. She is a voting member of the Federal Open Market Committee this year
One thing to keep in mind when seeing these comments from Federal Reserve members like Mester - they are permitted to speak their mind on their own views on the economy and policy etc., but they are not permitted to speak on the views etc. of other members.
Back in early January Mester said she was expecting more than 4 rate hikes in 2016... 'likely appropriate'. She hasn't repeated that , errr, how can I put this politely? ... gung-ho but misguided idea this time around.
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Meanwhile .... little change in the USD across the board.
