Cleveland Fed President Mester: We will continue to keep interest rates steady at the December meeting

Cleveland Fed President Loretta Mester signaled that she would support the central bank continuing to keep interest rates steady at its December meeting, stating that policy is in a good position to assess whether inflation is on a path back to 2 percent.

Mester said at an event in Chicago on Wednesday: "Monetary policy is in a good place for policymakers to assess incoming information on the economy and financial conditions and to decide whether policy is well-calibrated to ensure inflation returns to 2 percent in a timely way."

Mester also pointed out that price pressures are easing, adding that "there has been noticeable progress on inflation, even as the overall economy has remained relatively strong."

Mester, who has been a strong proponent of raising interest rates over the past two years, is not a voter on the policy-setting Federal Open Market Committee this year, but she will have a vote in 2024.

Mester did not explicitly state that she would support a third consecutive pause in interest rate hikes next month, but her remarks mirror what other hawkish policymakers have said this week.

News Source: 12punto