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Recession won’t stop Fed from raising U.S. rates, says official

Cleveland Federal Reserve Chair Loretta Mester said the recession will not stop the US central bank from continuing to raise interest rates.

“We will only stop when we reach the goal. We will do everything possible to guarantee price stability”, he highlighted, during an event held by the institution itself.

Loretta Mester commented that there is no evidence so far that the Central Bank’s tightening is harming the financial system and institutions.

She argued that in the face of high inflation, it is more important to ensure that the BC does enough. “Inflation is unacceptably high in the US, and the Fed’s current focus is on price stability,” she pointed out.

The central banker also said that the Fed even underestimated the persistence and magnitude of inflation, assuming it was transitory.

Source: CNN Brasil

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