Cleveland Fed Chair Loretta Mester said Tuesday that expect the US economy to be weak in the first months of 2021, as reported by Reuters.
Additional comments:
“If vaccines are implemented, it is expected a strong rebound in growth in the second half of 2021“.
“I don’t expect to see any further substantial progress toward the Fed’s targets this year.”
“We need more accommodations than in the past to raise inflation to the Fed’s 2% target. “
“She probably wouldn’t be upset if inflation hits 2.5% because it probably wouldn’t come quickly.”
“The real problem now is inflation that can go too low“.
“Low returns can create risks to financial stabilityBut the underlying risks to the financial system at the moment are not excessive. “
“Monetary policy is well calibrated“.
“I would like the Fed to start reducing asset purchases next year, but it really depends on the economy.”
“If the launch of the vaccine is much slower than expected, that would slow economic growth and it would reduce the prospects. “
“The Fed has tools to deal with the instability in financial markets.”
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