Rate delay could deprive Fed of tools in future, warns Mester
Cleveland Fed president warns public could deem unconventional tools “ultimately ineffective”
Waiting too long to raise interest rates could jeopardise the Federal Reserve's ability to use unconventional monetary policy in the future, Loretta Mester warned on July 1.
Federal Reserve Bank of Cleveland president Mester warned delaying normalisation increased risks to financial stability, raised the probability of having to tighten more aggressively in the future, and even threatened the Fed's toolkit.
"If we fail to gracefully navigate back toward a more normal policy stance at the
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