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- Cleveland Fed President Loretta Mester: it was the right decision to start raising interest rates in December
Cleveland Fed President Loretta Mester: it was the right decision to start raising interest rates in December
Cleveland Fed President Loretta Mester said on Sunday that it was the right decision to start raising interest rates in December.
"I fully supported the FOMC's December action: Based on the economic outlook, I thought it was prudent to take the first step on the path of gradual normalization of interest rates," she said.
Mester pointed out that further interest rate hikes will depend on the incoming economic data.
"The actual path the fed funds rate will follow will depend on the economic outlook as informed by incoming information, but according to the FOMC's current assessment of the outlook, monetary policy is expected to remain accommodative for some time to come, with rates expected to move up only gradually to more normal levels," Cleveland Fed president noted.
"Starting on the gradual normalization path now helps ensure that policy doesn't lag too far behind the economy," she added.
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