5/31, 7:07 AM (Source: TeleTrader)
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Fed's Mester backs June rate hike

Cleveland Federal Reserve Bank President Loretta Mester in an interview with the Financial Times said that there is no "compelling reason to wait" for a rate hike and that the Fed should proceed with raising rates in June.

Mester emphasized the importance of bringing rates up and then holding them steady to gain clarity on the economy's trajectory. She went on to note that extreme market volatility and unforeseen shocks should be the only justifications for skipping a rate increase, as tightening measures are deemed necessary.

"At this point, I don't really necessarily see a compelling reason that we wouldn't want to take another small step to counter some of that really embedded, stubborn inflationary pressure," Mester said.

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