Fed officials disagree on dealing with uncertainty
Vice-chair Brainard and Cleveland Fed’s Mester take different stances on uncertainty
The US Federal Reserve is acting in an intensely uncertain situation, and two of its top officials have taken diametrically opposed views on how to respond.
“We will be operating in an uncertain environment for some time,” said the Federal Reserve Bank of Cleveland’s president, Loretta Mester, on October 11.
So far, the Federal Open Market Committee has acted aggressively, raising the federal funds rate 75 basis points at four consecutive meetings, in the face of multi-decade high inflation.
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