Mester doesn't see Fed cutting rates in 2023

Cleveland Fed President Loretta Mester estimated on Wednesday the Federal Reserve won't cut its key interest rates during the next year, explaining the central bank needs to hike rates until they are above 4% by early 2023.

Commenting on economic challenges in the United States, Mester warned that it's too soon to conclude that inflation has peaked, adding that the unemployment rate will likely rise past 4% by the end of 2023.

Fed officials have a broad consensus on waiting for the upcoming inflation data on September 13 before deciding on the size of the next rate hike. Mester's remarks mostly align with Chair Jerome Powell's speech delivered last week at Jackson Hole.

Baha Breaking News (BBN) / ND