10/1/2021, 7:51 PM (Source: TeleTrader)
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Fed's Mester: I see interest rate hike in 2022

Federal Reserve Bank of Cleveland President Loretta Mester said on Friday that she expects the United States central bank to raise interest rates in late 2022.

"I see a Fed interest rate liftoff next year, Mester noted and added tapering of asset purchases should start in November this year as long as there aren't any "unexpected developments" that could affect the economic recovery. The central banker also stated she expects the labor market to continue improving, which would then drive inflation lower.

Earlier this week, several other Fed officials, including Chair Jerome Powell, said the bank is likely to begin tapering before the end of the year. Philadelphia Fed President Patrick Harker agreed with Mester an interest rate hike could happen in late 2022, while Minneapolis Fed chief Neel Kashkari claimed it won't be necessary to raise rates before 2024.

Baha Breaking the News (BBN) / NP