9/26/2022, 10:32 PM (Source: TeleTrader)
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Mester: Restrictive policy will be needed for longer

Cleveland Federal Reserve Bank President Loretta Mester stated on Monday that the United States central bank will have to keep a more restrictive monetary policy stance for longer to keep inflation expectations under control and to bring inflation down.

In a speech delivered at the Massachusetts Institute of Technology Golub Center for Finance and Policy, Mester underscored the Fed's leadership will be "resolute in putting inflation on a sustainable downward path" to the 2% goal. "There will be some pain and bumps along the way as the growth in output and employment slow and the unemployment rate moves up," she acknowledged.

The Fed official specified that inflation would have to decrease for "several months" before she could determine if price increases have reached their peak. On the subject of wages, she noted that "they are growing much faster than the pace consistent with price stability and there is little sign that wage pressures are abating."

Baha Breaking News (BBN) / MS