Fed's Mester: Need to be cautious in thinking that inflation has peaked
|Cleveland Federal Reserve President Loretta Mester said on Friday that the July inflation report was welcome news but added that she needed to see more convincing data to conclude inflation was coming down, as reported by Reuters.
Additional takeaways
"I think FOMC Chairman Jerome Powell delivered a very strong message."
"We're all in and we're going to be resolute about getting inflation to goal."
"Market is between 50 and 75 for September and that's where my head is, need to see more data though."
"We really have an imbalance in supply and demand, Fed tools really work on demand side."
"European situation may indicate that gasoline prices do not keep retreating."
"Need to be cautious in thinking that inflation has peaked."
"Would need to see convincing evidence of inflation coming down before we stop rate hikes."
"We're still in negative real rates, haven't even gotten to a neutral fed funds rate."
"I think will need to take rates above 4% and leave them there."
"Not predicting recession but expect below-trend growth this year and next."
"Will likely see weakening in labor market."
Market reaction
The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.1% on the day at 108.30.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.