Central Banks
Mester Says Latest Inflation Data Shows Fed Has More Work to Do
- Cleveland Fed chief says three rate cuts ‘feels about right’
- Mester also signals support for Basel III bank capital plan
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Federal Reserve Bank of Cleveland President Loretta Mester said inflation data out Thursday showed that policymakers have more work to do to cool price pressures, but said it didn’t change her expectation that the Fed will cut interest rates three times this year.
In an interview with Yahoo Finance, Mester said it’s unlikely that inflation will continue to ease as quickly as it did last year, when improvements in supply chains and a growing workforce helped quell price increases. The Fed’s preferred gauge of underlying inflation rose 0.4% in January, the fastest pace since early 2023, according to government data.