Cleveland Fed Pres. Loretta Mester is speaking (voting member in 2024), and says:
- Fed is at or near peak of rate hike cycle
- Reiterates outlook aligned with her fed forecasts eyeing one more hike.
- Fed rate decision will be driven by incoming economic data.
- If sustained, higher bond yields will help moderate economic activity.
- Fed needs to be nimble with monetary policy right now..
- Inflation calling but still too high. Risk tilted to the upside.
- Labor markets showing moderation, resilience.
- Data shows signs of moderating wage gains.
- Fed must not be complacent on getting inflation back to 2%.
- Possible recent developments could slowly move down in inflation.
Fed Mester is a voting member in 2024. As we get closer to January, that is more important. The expectations for the Fed in November is for no rate change, and December, although higher than November, is still below the 50% level.