Fed's Mester: We can't expect last year's disinflation to continue

Joshua Gibson FXStreet

According to Cleveland Federal Reserve (Fed) President Loretta J. Mester, inflation remains a challenge that the Fed needs to overcome, but rate cuts should resume later this year as long as the data gives the Fed enough room to operate.

Key highlights

We cannot rely on the pace of disinflation last year to continue this year.
Demand will moderate, and growth this year will not be as strong as last year.
Expects a slowdown in employment growth.
A slowing of employment growth is what the Fed needs to see in order to ease rates.
Three rate cuts this year feels about right.
Fed is in a really good spot, both on policy and the US economy.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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