“As we gather more evidence about how the economy is developing, , monetary policy is well positioned for risk management.”
“The most likely scenario for the economy as a whole and the region as a whole is that the current restrained stance of monetary policy continues to support moderate growth and labor market conditions, and that this easing further eases price pressures,” Mester said. It will contribute.” . “We expect inflation to develop over time, but at a slower pace than last year,” he said.
Mr. Mester is a voting member of the interest rate-setting Federal Open Market Committee, and at a meeting next month, officials will seek additional evidence that inflationary pressures are building, while raising overnight interest rates. Most forecasts indicate that the target range will be maintained at 5.25% to 5.5%. to decline. Mr. Mester plans to retire from the bank at the end of June.
Mester said the risks to inflation are rising and the risks to slowing growth and employment are declining, meaning that in a booming economy, the Fed has room to look for more evidence that inflation is back on target before cutting rates. He said that it means that there is. Mester said the lack of progress in curbing inflation was “disappointing”, adding: “We now think it will take longer to reach the 2% target than we previously thought.” He also said the soft consumer-level inflation data for April was welcome. (Reporting by Michael S. Darby; Editing by Andrea Ricci)
