Fed should make sure it does not ‘fall behind’ – Mester
US central bank should “remain vigilant” as employment reaches full capacity and balance sheet begins to unwind
The president of the Federal Reserve Bank of Cleveland has said the US central bank need not raise rates every meeting, but should be wary not to “fall behind”.
Speaking in Minneapolis on May 18, Loretta Mester said it was important the Federal Open Market Committee (FOMC) remain “very vigilant”, given the low level of interest rates and the large size of the Fed’s balance sheet.
Slightly hawkish in her remarks, Mester said the Fed had met the employment part of its mandate and, therefore,
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