Mester: Fed will need to go above 5% and stay there for awhile
Fed needs to keep at rate hikes until inflation trend brakes lowerSays here view on the economy and inflation hasn't been changed by the latest dataData shows inflation not yet on trend to get back sustainably to 2% targetNew inflation data affirms case for rate hikesAsked about 25 bps vs 50 bps at March meeting, declines to saySays 25 vs 50 bps discussion misses bigger pictureSays there's more data and info to take on before debating rate rise sizes at March 21-22 meetingAgain, she's passing up an opportunity to be more hawkish than previously. She has previously said that rates need to get above 5% and stay there, so that's not new. This article was written by Adam Button at www.forexlive.com.
- Fed needs to keep at rate hikes until inflation trend brakes lower
- Says here view on the economy and inflation hasn't been changed by the latest data
- Data shows inflation not yet on trend to get back sustainably to 2% target
- New inflation data affirms case for rate hikes
- Asked about 25 bps vs 50 bps at March meeting, declines to say
- Says 25 vs 50 bps discussion misses bigger picture
- Says there's more data and info to take on before debating rate rise sizes at March 21-22 meeting
Again, she's passing up an opportunity to be more hawkish than previously. She has previously said that rates need to get above 5% and stay there, so that's not new.
This article was written by Adam Button at www.forexlive.com.
