The president of the Federal Reserve Bank of Cleveland, Loretta Mester, said Friday that the US economy has met the “substantial progress” condition to begin the reduction in bond purchases from the Fed, according to Reuters.
Key comments
“I support starting with the decline in bond buying in November, ending in the first half of next year. “
“On inflation, the bar for raising rates has largely been met.”
“It is expected that the conditions for the first rate hike is completed by the end of next year“.
“The economy remains ‘some distance’ from the target of maximum employment needed to raise rates.”
“The uncertainty about the forecasts is high.”
“Strong recovery is underway, but risks remain“.
“Delta variant will temper consumer spending in the second half, but it won’t derail the economy. “
“Supply bottleneck limitations will last well into next year.”
“We expect GDP growth of 5.5% this year and 3.75% to 4% next year.”
“Unemployment is expected to be 4.75% this year and 4% by 2023.”
“Inflation is likely to remain above 2% in the next two years.”
“The upside risks for inflation outweigh the downside, but the uncertainty is high.”
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