Loretta Mester, President of the Cleveland branch of the US Federal Reserve (FED), made statements that interest rate increases may continue.
FED Cleveland branch president Loretta Mester shared her views on interest rate policy in her statement on Monday, October 2. Stating that uncertainty about the market continues, Mester said: In 2023 once again interest rate increase He stated that it could happen.
Official, Whether policy decisions will be sustainable Implying that investigations on the issue are continuing, he talked about the factors that will affect the interest rate decision as follows:
I suspect we may have to raise Fed rates once again this year. Policy decisions will be decisive, especially whether the good rate of progress in inflation we have seen in the last three months will be sustained and whether labor market conditions will remain healthy, although moderate.
Stating that they evaluated all factors and catalysts, Mester said: too much or too little economic tightening He touched upon the problems it may cause:
Too much tightening will slow the economy more than necessary and lead to higher costs than necessary to return inflation to our target. Too little tightening will allow high inflation to persist, with its short- and long-term consequences, requiring a much longer and costly journey back to price stability.
FED set its last policy rate in September 22 year high the percentage that is Keeping it constant between 5.25-5.50 It gave mixed signals to the markets. Total since March last year 11 interest rate increases FED, which performs the interest rate in total 525 points had increased.