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Fed's Mester: Reiterates view that some 50bps rate hikes to be needed this year

Cleveland Fed President and FOMC member Lorreta Mester on Wednesday reiterated her view that we (the Fed) are going to need to do some 50bps rate hikes this year, reported Reuters. 

Additional Remarks: 

"I would like to frontload some of our interest rate hikes and it is better to do that earlier rather than later."

"Frontloading rate hikes better positions policy for however the US economy evolves."

"I don’t have concerns on beginning to reduce the balance sheet and raise rates at the same meeting."

"By reducing the balance sheet, it will have a good effect on not further distorting the yield curve."

"Markets can handle such a move and we need to get on with the process."

"We have to do what we can do to get inflation under control."

"I do think we need to be more aggressive earlier rather than later."

"I am supportive of getting the balance sheet process started."

"We will need to bring interest rates up this year and next to tame inflation."

"Some wage increases we are seeing are outstripping productivity growth."

"It is going to take some deliberate policy actions on our part to bring inflation down."

"There are no concerns that rate increases are going to push the US economy into recession."

"We need to get inflation under control for both sides of the mandate."

"I supported 25bps at the last meeting because it was coupled with ongoing rate increases."

Author

Joel Frank

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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