Sky wanderer
The US central bank should continue to evaluate incoming economic data to ensure inflation is on a sustainable path towards the 2% target, Cleveland Fed President Loretta Mester said on Wednesday.
Last year, however, inflation data came in lower than expected Inflation has been a little stronger than expected this year, Mester noted in a series of talks at South Franklin Circle in Chagrin Falls, Ohio.
The current persistent inflation, combined with a strong labor market and resilient economic growth, means the Federal Reserve can afford to remain patient, keeping its benchmark rate at a twenty-year high.
Mester still expects “inflation to come down, but I think we need to watch and gather more information before we take any action,” he said. If inflation remains persistent, though, rates could stay higher for longer, she added.
“We are looking at risks to both sides of our mandate” related to price stability and full employment, he concluded.