Loretta Mester, president of the Federal Reserve bank branch in Cleveland:
- It is important for public to understand that variation on inflation is expected and normal
- Says she built in more than three hikes into her forecasts for 2017
- Would be concerned if there were less than three rate hikes this year if US economic data holds up
- Says on rising business sentiment that there isn't yet convincing evidence that firms are spending more as a result in her district
- FOMC continues to discuss implementation and timing of change on balance sheet policy, can offer no further details
- Balance sheet policy should not substitute for federal funds rate changes
- Says there is not enough precision to use balance sheet as an 'active' tool outside of extraordinary circumstances
Headlines via Reuters
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Earlier from Mester:
- Fed's Mester: Has built in a 'little bit' of fiscal stimulus into her projections
- Fed's Mester: Does not see hike at every meeting, but more than 1 a year