Central Banks
Fed’s Mester Sees Larger Policy Risks From Too Little Tightening
- Cleveland Fed leader says there is some easing in inflation
- The US will have some pain to move to stable prices, she says
Loretta Mester
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Federal Reserve Bank of Cleveland President Loretta Mester said while she was encouraged by October’s better-than-expected inflation report, she remains more concerned the central bank could fail to sufficiently tighten monetary policy.
“Given that inflation has consistently proven to be more persistent than expected and there are significant costs of continued high inflation, I currently view the larger risks as coming from tightening too little,” Mester said Thursday in prepared remarks for an event hosted by Princeton University.