Comments from the Fed's Mester
- Inflation weakness due to 'special factors' not a general downward trend
- Repeats support for gradual hikes
- May take a couple months to see uptick in inflation
- Expects further hikes and a start of the runoff as economy grows somewhat above 2%
- Payroll growth likely to slow a bit from current pace
The dollar is continuing to struggle but I don't see anything new in these comments. It will be interesting to see what she has to say if/when inflation is still low in a 'couple months'. If history repeats, she will just kick the can another 'couple months' further.
