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☆ Fed's Mester still expects rate cuts this year, but rules out May
▼ + stars: | 2024-04-02 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Cleveland Federal Reserve President Loretta Mester said Tuesday she still expects interest rate cuts this year, but ruled out the next policy meeting in May. Should that continue, rate cuts are likely, though she didn't offer any guidance on timing or extent. While looking for rate cuts, Mester said she thinks the long-run federal funds rate will be higher than the long-standing expectation of 2.5%. After the March meeting, the long-rate rate projection moved up to 2.6%, indicating there are other members leaning higher. Mester noted the rate was very low when the Covid pandemic hit and gave the Fed little wiggle room to boost the economy.

Persons: Loretta Mester, Mester Organizations: Cleveland Federal, Market Locations: Cleveland

☆ Fed's Mester wants 'much more evidence' that inflation has been defeated
▼ + stars: | 2023-11-16 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

"We're making progress on inflation, discernible progress. "We're going to have to see much more evidence that inflation is on that timely path back to 2%. But we do have really good evidence that it has made progress and now it's just, is it continuing?" Following the reports, market pricing in the futures market completely eliminated the possibility that the Fed would be approving any additional interest rate hikes. Comparing the Fed's position to navigating a ship, Mester said, "We're at the crow's nest.

Persons: Loretta Mester, Mester, CNBC's Steve Liesman, hasn't Organizations: Cleveland Federal, Labor Department Locations: midyear

☆ Fed's Mester says Fed at or near peak for interest rate target
▼ + stars: | 2023-10-20 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

Mester noted Fed forecasts released at the September meeting eyed another increase in what is currently a federal funds target rate range of between 5.25% and 5.5% by the end of the year, and then to hold rates steady at high levels for an extended period. “This is consistent with my own reading of economic conditions, the outlook, and the risks to the outlook,” she said. Mester, who does not have a vote on the Federal Open Market Committee this year, also noted that the outlook for policy can change. In her remarks, Mester said inflation pressures are coming down but remain too high. Mester also said that if the recent surge in bond yields is sustained it should help moderate demand, which aligns with Fed goals.

Persons: Loretta Mester, ” Mester, Mester, ”, Michael S, Andrea Ricci Organizations: Federal Reserve Bank, Cleveland, Federal, Fed, Thomson

☆ Morning Bid: Bonds haunted by uncertainties old and new
▼ + stars: | 2023-10-20 | by ( ) www.reuters.com time to read: +3 min

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsA look at the day ahead in European and global markets from Tom WestbrookIt's looking like the worst week of another bad year for bonds. Curiously, the dollar hasn't moved higher with the latest leap in yields, perhaps because currency traders see recession in the offing. Fed Chair Jerome Powell said little that markets didn't already know on Thursday, but in keeping his options open he kept the pressure on bonds. "A range of uncertainties, both old and new, complicate our task of balancing the risk of tightening monetary policy too much against the risk of tightening too little," he said.

Persons: Brendan McDermid, Tom Westbrook It's, Brent Donnelly, Jerome Powell, Joe Biden, Israel, Fed's Mester, Harker, Tom Westbrook, Edmund Klamann Organizations: New York Stock Exchange, REUTERS, Spectra Markets, MSCI's, Bank of Japan, North America ., Thomson Locations: New York City, U.S, New York, MSCI's Asia, Japan, Gaza, China, London, North America

☆ Fed's Mester: Strong jobs data do not change underlying view on hiring
▼ + stars: | 2023-10-06 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

"With this one report, [the data] continues to say it's a strong labor market, but it is getting a little bit less tight than we saw before," Mester said in an interview on CNN International. Mester spoke to the television channel following the release of the September jobs report, which showed the U.S. added a bigger-than-expected 336,000 jobs last month and upwardly revised the prior month's job gain, with a steady 3.8% unemployment rate. The strength of the jobs data renewed bond market worries about additional Fed rate hikes which had receded among many investors. Several economists noted the softening earnings data in the report, evidence that inflation pressures continued to ebb, reducing pressure on the Fed to hike rates further. "What we've seen in the economy so far is that it's been a very resilient economy," Mester said, adding "economic growth has been strikingly strong and yet we're still making progress on inflation."

Persons: Loretta J, Mester, Jim Urquhart, Loretta Mester, it's, Michael S, Diane Craft, David Gregorio Our Organizations: Federal Reserve Bank of Cleveland, Jackson, REUTERS, Federal Reserve Bank, Cleveland, CNN International, Fed, Derby, Thomson Locations: Jackson , Wyoming, U.S

☆ Fed's Mester open to another rate hike if economy stays on current path
▼ + stars: | 2023-10-03 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

"I probably favor going again, but again, we're going to have to wait and see how the economy evolves." Mester said she expects inflation to return to 2% by the close of 2025. "We're going to have to follow that and watch it and that will influence not only our policy decisions, but how the economy evolves," Mester said. "Over the next year, those tighter or higher rates will have an impact on the economy and we just have to take that into account when we're setting monetary policy." Reporting by Michael S. Derby; Editing by Jonathan Oatis and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

Persons: Loretta Mester, Mester, Michael S, Jonathan Oatis, Paul Simao Organizations: Cleveland Federal, U.S, Fed, Thomson Locations: bank's

☆ Fed's Mester says one more U.S. rate hike may be needed
▼ + stars: | 2023-10-02 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

FILE PHOTO: Cleveland Fed President Loretta Mester takes part in a panel convened to speak about the health of the U.S. economy in New York November 18, 2015. REUTERS/Lucas Jackson/File PhotoNEW YORK (Reuters) - Federal Reserve Bank of Cleveland President Loretta Mester said Monday that the U.S. central bank most likely isn’t done raising interest rates amid ongoing inflation pressures. The Fed has raised rates aggressively over the last year and a half to help cool inflation. Ebbing price pressures allowed officials to keep the federal funds target rate range at between 5.25% and 5.5% in September. Mester said the economy has proved to be stronger than expected at the start of the summer.

Persons: Loretta Mester, Lucas Jackson, ” Mester, Mester’s, Michael Barr, Michelle Bowman, “, ”, Mester Organizations: Cleveland Fed, REUTERS, Federal Reserve Bank, Cleveland Locations: U.S, New York, Cleveland

"The longer we let inflation remain above 2%, we're building in a higher and higher price level," she said, and that hurts American households. "I'm going to have to reassess that because, again, it's going to be, how quickly do you think inflation is moving down?" "I do not want to be in a position of prematurely loosening policy," Mester said. Fed projections submitted in June show a median forecast for 2.1% inflation by the end of 2025; Mester said hers was for 2% inflation. The Fed's next and possibly last rate hike "doesn't necessarily have to be September, but I think this year," she said.

Persons: JACKSON, Cleveland Federal Reserve Bank Loretta Mester, Mester, Ann Saphir, Marguerita Choy Organizations: Cleveland Federal Reserve Bank, Reuters, Thomson Locations: , WYOMING, Jackson Hole , Wyoming

☆ Fed's Mester: More hikes needed to bring inflation back down to target
▼ + stars: | 2023-07-10 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

“The economy has shown more underlying strength than anticipated earlier this year, and inflation has remained stubbornly high, with progress on core inflation stalling,” Mester said in a virtual speech before a University of California, San Diego forum. Mester, who is not a voting member of the rate-setting Federal Open Market Committee this year, did not offer a time table for action. In her remarks, Mester said Fed actions were working to restore balance in the economy. But she also noted that inflation and the job market remain out of whack relative to where they need to be to cool price pressures. “Core measure indicates that inflation is stubbornly high and broad-based,” Mester said.

Persons: Loretta Mester, ” Mester, Mester, Jerome Powell, John Williams, ”, Michael S, Andrea Ricci Organizations: Federal Reserve Bank, Cleveland, University of California, Fed, New York Fed, Thomson Locations: San Diego

☆ Fed's Mester says no 'compelling' reason to wait for fresh rate hike -FT
▼ + stars: | 2023-05-31 | by ( ) www.reuters.com time to read: 1 min

May 31 (Reuters) - Federal Reserve Bank of Cleveland President Loretta Mester sees no "compelling" reason to wait to implement another interest rate hike, Financial Times reported on Wednesday. "I don't really see a compelling reason to pause," Mester told FT in an interview. "I would see more of a compelling case for bringing the rates up and then holding for a while until you get less uncertain about where the economy is going." Reporting by Anirudh Saligrama in Bengaluru; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

Persons: Loretta Mester, Mester, Anirudh, Tom Hogue Organizations: Federal Reserve Bank, Cleveland, Financial, Thomson Locations: Bengaluru

☆ Fed's Mester says not yet at point where it can 'hold' rates
▼ + stars: | 2023-05-16 | by ( Padraic Halpin | ) www.reuters.com time to read: +2 min

NEW YORK, May 16 (Reuters) - Federal Reserve Bank of Cleveland President Loretta Mester said on Tuesday that she does not think the U.S. central bank is at a point yet where it can hold interest rates steady for a period of time, given how stubborn inflation is. However, four U.S. central bankers on Monday signaled they see interest rates staying high and, if anything, going higher, given inflation that may be slow to improve and an economy showing only tentative signs of weakness. "When we get the policy to that rate, I think we're going to be holding for a while in order to make sure that the interest rate is coming back down. So I don't put it in terms of a pause, I put it in terms of a hold. At this point, given the data we've gotten so far, I would say no."

☆ Fed's Mester sees policy rate over 5% and 'soft landing' on horizon
▼ + stars: | 2023-04-20 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

Mester, who does not have a vote on the rate-setting Federal Open Market Committee this year, spoke less than two weeks before the Fed's May 2-3 policy meeting. The central bank is widely expected to hike rates a final time at that meeting, lifting its policy rate by a quarter of a percentage point to the 5.00%-5.25% range. Noting a need to be "prudent" with policy, Mester said this possible change in financial conditions "would work in the same direction as tighter monetary policy," which the Fed will need to take stock of "to help us calibrate the appropriate path of monetary policy going forward." Mester said she expects the unemployment rate, which is currently 3.5%, to rise to between 4.5% and 4.75%. "The 'soft landing,' of course, is what we're aiming for," Mester said, referring to a scenario in which monetary tightening slows the economy, and inflation, without triggering a recession.

☆ Fed's Mester says rate target will need to go over 5%
▼ + stars: | 2023-04-05 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

April 4 (Reuters) - Federal Reserve Bank of Cleveland President Loretta Mester said on Tuesday that the U.S. central bank likely has more interest rate rises ahead amid signs the recent banking sector troubles have been contained. The decision was haunted by banking sector troubles that led policymakers to say that a tightening in financial conditions would likely weigh on economic activity. "I was very comfortable with moving ahead” with the rate rise, given that authorities had taken steps to manage risks coming from banking sector troubles, Mester said in remarks following her speech. At the policy meeting, officials also penciled in a single additional rate rise for this year, as the Fed continues to boost the cost of short-term borrowing in a bid to lower inflation. Mester expressed confidence that banking sector woes should ultimately prove contained.

☆ Watch Fed Chair Jerome Powell speak live in second day of Capitol Hill testimony
▼ + stars: | 2023-03-08 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Please refresh the page if you do not see a player above at that time.] Federal Reserve Chairman Jerome Powell testifies Wednesday before the House Financial Services Committee in remarks that markets will be watching closely. On Tuesday, Powell told the Senate Banking Committee that the central bank could raise interest rates more aggressively if inflation data remains strong. "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes," Powell said, igniting a sell-off on Wall Street in both stocks and bonds. Powell also offered commentary on the debt ceiling, cryptocurrency and other topics.

☆ CNBC Daily Open: Inflation in January was hotter than expected. Markets felt the heat
▼ + stars: | 2023-02-27 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Liz Ann Sonders, chief investment strategist at Charles Schwab, thinks that they're the markets skimming off speculative froth. "Markets will likely stay choppy during these months where higher rates have yet to materially cool consumer spending," wrote Roach. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ CNBC Daily Open: January's inflation reading was hotter than expected. Markets felt the heat
▼ + stars: | 2023-02-27 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

☆ Fed's Mester says hot inflation data affirms case for more rate hikes
▼ + stars: | 2023-02-24 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

The government inflation report “is another indication that the impulse of inflation and price pressures is still with us. Mester spoke in the wake of the release of government data on incomes, spending and price pressures. “We just need to see all those prices coming back down and we haven't seen that sustainably yet,” Mester said. Since Mester called for a 50 basis point hike, jobs data has been very robust and inflation has been stronger than expected, suggesting her case for larger action remains in place. Mester reiterated in the interview that she still believes the federal funds rate, now at between 4.5% and 4.75%, needs to get above 5% and stay there to bring inflation down.

☆ Cleveland Fed's Mester: Need to do more to get back to price stability
▼ + stars: | 2023-02-24 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCleveland Fed's Mester: Need to do more to get back to price stabilityCleveland Fed Chair Loretta Mester joins 'Squawk Box' to discuss whether the markets can help the Fed bring down inflation, her thoughts on the trade-off between labor and price stability, and more.

☆ Morning Bid: Kuroda 2.0
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +2 min

[1/2] The Japanese government's nominee for the Bank of Japan (BOJ) Governor Kazuo Ueda arrives for a hearing session at the lower house of the parliament in Tokyo, Japan, February 24, 2023. Interest rate markets are positioned for an end to yield curve control as a first step away from decades of super-easy policy experiments in Japan. Yet as he fronted his confirmation hearing before parliament on Friday, he sounded very much like incumbent Haruhiko Kuroda. Traders responded with relief and the Nikkei share average (.N225) had its best session in a month. A surprise could shake things up, though with U.S. rate expectations already ratcheting higher through February a degree of stickiness is priced in.

☆ Fed's Mester sticks with December interest rate projection for now
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

Feb 24 (Reuters) - Cleveland Federal Reserve President Loretta Mester said on Friday that she was keeping to her previous forecast made at the end of last year for the U.S. central bank's interest rate peak as economic data since then has not caused her to change her mind. "I had my funds rate a little bit above the median in that projection, and I haven't really seen much change in my outlook for the economy since that time," Mester said in an interview with broadcaster CNBC. "So I see that we're going to have to bring interest rates above 5%...I do think we need to be somewhat about 5% and hold there for a time in order to get inflation on that sustainable downward path." Mester was speaking before inflation data was published which showed price pressures accelerating once again, causing investors to bet the Fed will raise interest rates at least three more times. Reporting by Lindsay Dunsmuir; Editing by Jane Merriman and Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

☆ Fed's Mester says she has hope that inflation can be brought down without a recession
▼ + stars: | 2023-02-24 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Cleveland Federal Reserve President Loretta Mester said Friday that interest rates likely need to keep moving higher to get inflation back to acceptable levels. In a CNBC interview, Mester said she sees the central bank's benchmark interest rate having to rise above 5% and stay there for a while. Many economists expect the Fed won't be able to achieve its inflation goal without tipping the economy into a recession. She also expressed hope that the Fed can achieve its goal without crushing a labor market that has been surprisingly resilient despite all the rate increases. We can have a healthy labor market and we can get back to price stability," she said.

All eyes on Friday - not just in Asia but around the world - will be fixed on Japan, specifically the latest inflation figures and the first of two parliamentary confirmation hearings from incoming Bank of Japan Governor Kazuo Ueda. The importance of Japan on global market flows and pricing cannot be overstated. Japan is the world's largest creditor nation and a chunk of the trillions of dollars Japanese investors have invested overseas could be repatriated if domestic monetary policy is tightened. Not only are the Fed and many other central banks raising interest rates, it finally looks like inflation has come to Japan. It could be a volatile end to the week for markets, with U.S. inflation figures for January also slated for release.

☆ Fed's Mester says more rate hikes needed to combat inflation
▼ + stars: | 2023-02-16 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

When the Fed met at the start of the month to deliberate on interest rate policy, it moderated the pace of what had been a torrid barrage of rate hikes and lifted its overnight target rate by quarter percentage point, to between 4.5% and 4.75%. The Fed signaled more rate hikes are coming to help lower overly high inflation levels back to the 2% target. Mester, who does not have a vote on the Federal Open Market Committee this year, noted she would have been open to a larger rate rise at the gathering. “It is welcome news to see some moderation in inflation readings since last summer, but the level of inflation matters and it is still too high,” Mester said. This will cool inflation and wage pressures and “as a result, I expect to see good progress on inflation this year,” the official said.

☆ Fed's Mester says rates need to rise "a little bit" above 5%
▼ + stars: | 2023-01-18 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

A U.S. Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration(Reuters) - The Federal Reserve needs to raise interest rates a “little bit” above the 5.00% to 5.25% range in order to bring inflation to heel, Cleveland Fed President Loretta Mester said on Wednesday, as she declined to disclose her preferred size of move at the upcoming policy meeting. “We’re not at 5% yet, we’re not above 5%, which I think is going to be needed given where my projections are for the economy,” Mester said in an interview with the Associated Press. “We’re beginning to see the kind of actions that we need to see,” Mester added. “Good signs that things are moving in the right direction ... That’s important input into how we’re thinking about where policy needs to go.”Fed Chair Jerome Powell tested positive for COVID-19 on Wednesday and is experiencing mild symptoms, the central bank said in a statement on Wednesday.

☆ Fed's Mester sees rates rising more than most policy makers have forecast
▼ + stars: | 2022-12-16 | by ( Michael S. Derby | ) www.reuters.com time to read: +1 min

Dec 16 (Reuters) - Cleveland Federal Reserve bank President Loretta Mester said on Friday that she believes the U.S. central bank will have to raise interest rates higher than the level most policy makers cited in their Fed forecasts this week. "We need to continue to bring up interest rates into a restrictive stance," Mester said. Mester has been a voting member of the rate setting Federal Open Market Committee this year but will not hold that role next year. Mester said recent inflation data pointing to moderating price increases is "good news." Reporting by Michael S. Derby; Editing by Leslie Adler and Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.

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