Fed's Mester: Repeats that Fed must stay vigilant against 'falling behind'
Fed's Mester on monetary policy and the economic outlook
- Sees inflation rising to 2% over the next year or so
- Fundamentals supporting continued expansion are sound
- Contacts say even if political initiatives fall behind, they expect business environment to remain positive and that will translate into increases in spending and hiring
- Repeats she favors gradual hikes
- Favors balance sheet decrease this year
I was looking for a hint of worries that would open the door to a June pause. it's not here. But that isn't a big surprise given Mester's hawkish history.