Cleveland Fed President Loretta Mester told Bloomberg TV on Friday that the Fed has basically met the criteria for reducing asset purchases. However, it further noted that the only real risk is if the Delta variant causes a larger-than-expected decline in demand, according to Reuters.
Featured statements
“The Fed should use the September meeting to design with the pace and timing of tapering in mind.”
“Looking to finish tapering by the middle of next year.”
“If we start to cut back in November or December it is not going to make a significant difference to the economy.”
“The economy has basically improved enough that the fed doesn’t need to have those asset purchases in place.”
“Changes in interest rates are longer down the road.”
“The companies he talks to are concerned about the delta variant, but it hasn’t really dampened demand so far.”
“The Fed needs to remain vigilant for the effects of the delta variance.”
“Even if there is some pullback, he thinks the economy will remain strong.”
“The US economy has not yet reached peak employment.”
“The Fed needs to let the economy continue to move forward and then assess whether it is necessary to adjust rates.”
Market reaction
The US Dollar Index remains lower and was last seen losing 0.4% on the day at 92.67.
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