Says she is comfortable with rates going higher

More:

  • Need to see Trump policies before assessing impact

Hardly surprising Mester is comfortable with hikes, she was all over the news on Monday with similar comments:

  • Fed's Mester - no comments on rate outlook, says US economy on sound footing
  • Fed's Mester: There is more realisation of global factors affecting the US
  • Cleveland Fed President Loretta Mester spoke today in Singapore - recap

For example (Monday comments):

  • Would be comfortable raising rates at this point if economy keeps going the way it is
  • Fed's policy can't do more to help US labor market
  • No one on Fed is thinking of precipitately raising rates

And this via Reuters on the early-week comments:

  • However she has dissented in the past in favor of quicker rate hikes and on Monday urged the Fed to focus on returning to a more normal policy footing, including trimming its $4.5-trillion bond portfolio

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Dr. Loretta Mester is President & CEO of the Federal Reserve Bank of Cleveland

  • Mester is not an FOMC voter this year
  • Note, though, nonvoting presidents do attend the Committee meetings, participate in the discussions, and contribute to the Committee's assessment of the economy and policy options
  • She'll be a voter in 2018

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ps. On her "Need to see Trump policies before assessing impact"

Overnight we got US PMIs for January:

  • February 2017 US Markit manufacturing PMI flash 54.3 vs 55.3 exp
  • Markit US February prelim services PMI 53.9 vs 55.8 expected

Both the manufacturing and services PMIs missed on estimates, and both also came in below the previous month's results. On the plus side, both are still in "expansion". This sort of data is worth watching for indications on how the economy is assessing the policies of the new administration, and for indications while we wait for any new policies.