Federal Reserve Bank of Cleveland President Loretta Mester speaking in an interview with Bloomberg TV.
- Inflation is too high
- The CPI report was uniformly negative
- We don't need to decide on rates today
- Says she is not seeing any convincing evidence that inflation has peaked
- At the July meeting, we'll talk about the policy path
- Tightening must be done carefully, purposefully
- Fed will need to extend well beyond the neutral rate
- The data on CPI does not suggest a rate hike in July any smaller than that in June
The ballistic CPI report on Wednesday morning from the US has prompted forecasts for a 100bp rate hike from the Federal Open Market Committee (FOMC) at the July meeting. The FOMC announcement is on July 27.
