Cleveland Fed President Mester comments on interest rates

Cleveland Fed President Loretta Mester signaled that she would support holding interest rates steady at the central bank’s December meeting. Cleveland Fed President Loretta Mester signaled that she would support holding interest rates steady at the central bank’s December meeting, saying policy is well positioned to assess whether inflation is on track to return to 2%. “Monetary policy is in a good place for policymakers to evaluate the information coming in about the economy and financial conditions and to decide whether policy is well-calibrated to get inflation back to 2% in a timely manner,” Mester said at an event in Chicago on Wednesday. She also noted that price pressures have eased, adding that “even as the broader economy remains relatively strong, there has been noticeable progress in inflation.” Mester, a strong supporter of raising interest rates for the past two years, is not a voter on this year’s policy-setting Federal Open Market Committee but will vote in 2024. Mester did not explicitly say he would support a third straight pause on rate hikes next month, but his remarks echo what other hawkish policymakers have said this week.