The president of the Bank of the Federal Reserve from Cleveland, Loretta Mester, said on Thursday that they are not yet at a point where they can start thinking about curbing interest rate hikes, Reuters reported. “We are not yet in restrictive territory on the Fed Funds rate,” the official said.
Mester said that the dollar among those who made an adjustment, which “is useful for the inflation“. He said that the money supply has not been a reliable indicator for a long time. “I would like to see long-term inflation expectations come down from where they are now,” he said.
Regarding the labor market, Mester stated that all the indicators that emerge from the companies “is that the demand for labor exceeds the supply of labor.” He doesn’t see a big uptick in the labor force participation rate ahead.
Source: Fx Street
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