Interest rate messages from Fed officials

Fed officials have suggested they are in no rush to cut interest rates. The Fed officials have suggested they are in no rush to cut interest rates, saying the central bank should keep borrowing costs high for longer as policymakers await more evidence that inflation is abating. Speaking separately on Thursday, Cleveland Fed President Loretta Mester, New York Fed President John Williams and Richmond Fed President Thomas Barkin argued that it could take longer for inflation to reach its 2% target. “The economic data coming in suggests that it will take longer to build that confidence. It would be prudent to maintain our restrictive stance at this point for a longer period as we gain clarity on the path of inflation,” Mester said at an event in Ohio on Thursday. The Cleveland Fed chief said she expects price growth to slow more slowly than last year as downward pressure from improving supply chains eases. Mester, who votes on policy decisions this year, is set to step down at the end of her term in June. He reiterated comments he made earlier this week, saying policy was well positioned and that it was too early to say that inflation had stalled. Williams made similar comments in an interview with Reuters published on Thursday, saying he saw no reason to adjust monetary policy at this time. “I don’t expect to get the confidence that we need to see that inflation is going to move toward the 2% target in the very near term,” he said. “Getting to 2% will take time” Speaking on CNBC on Thursday, Barkin said demand would need to cool further to bring price increases back to the Fed’s target, noting that goods inflation has slowed significantly as supply chains improve. “I think getting to 2% in a properly sustainable way is going to take a little bit more time,” Barkin, who also votes on policy decisions this year, said. Also speaking on Thursday, Atlanta Fed President Raphael Bostic said he was grateful for the cooling seen in the latest report, but he said he would be watching data in May and June to make sure the numbers don’t reverse.