Fed’s Mester: I would advocate for 75 bps rate hike in July

Dhwani Mehta FXStreet

“Right now I would advocate for a 75 bps rate hike," Cleveland Federal Reserve (Fed) Bank President Loretta Mester said on Wednesday while noting that the “debate in July is between 50 bps and 75 bps rate hike."

Additional quotes

We want to see US rates above 4% next year.

Rate hikes are very necessary to get inflation down.

Market reaction

The US dollar index dropped from near-daily highs of 104.70 on these comments. At the time of writing, the spot is trading at 104.54, almost unchanged on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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