Fed's Mester: Repeats that Fed must stay vigilant against 'falling behind'

Author: Adam Button | Category: Central Banks

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.