“Lowering rates too early or too quickly without sufficient evidence to give us confidence that inflation is on a sustainable and timely path back to 2% would risk undoing the progress we have made on inflation,” said the Tuesday the president of the Cleveland Fed, Loretta Mester, according to Reuters. “Right now, I think the biggest risk would be to start reducing the fund rate too soon,” she added.
Featured Statements
“I still hope the Fed can cut rates later this year.”
“Fed policy is well positioned to address risks to the economy.”
“The Fed may cut rates gradually if the economy meets expectations.”
“The strength of the economy allows the Fed to take stock before cutting rates.”
“We expect further moderation of inflation at a slower pace.”
“We don't expect a smooth path back to 2%.”
“Risks to the economic outlook have leveled out.”
“We see the long-term funds rate at 3% versus 2.5% previously.”
“The growth forecast has been revised upwards and is now slightly above 2% this year.”
“The labor market is more balanced, a higher unemployment rate is expected.”
Market reaction
These comments did not cause a notable reaction in the US dollar. At the time of writing, the US Dollar Index was down 0.18% on the day, standing at 108.77.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
