Cleveland Fed President Mester's message about slowing down interest rate hikes

The Fed could shift to smaller rate hikes starting next month, Cleveland Fed President Loretta Mester said Monday. The Fed could shift to smaller rate hikes starting next month as it fine-tunes policy actions that will help curb high inflation while keeping the economy buoyant. “I think we could slow down from 75 basis points at the next meeting. I have no problem with that, I think it’s very appropriate. But I think we need to let the economy tell us what pace we need to be at,” Mester said in an interview with CNBC. The Fed raised interest rates by 75 basis points at its fourth consecutive meeting earlier this month but has since signaled that policymakers expect to move to smaller increases in borrowing costs after that to give the economy time to absorb the stability.