More comments from Mester:
- Backs adjusting ‘patience’ in next couple FOMC meetings to tee up H1 rate hike
- Eventual rate hikes will likely be gradual, data dependent
Mester is a bit contradictory here. There are three meetings left in H1 — on March 18, April 29 and June 17. When she talks about an H1 hike, she’s really only talking about June because with the ‘patient’ commitment in January, Yellen has basically committed to not hiking in March or April.