Cleveland Fed President Loretta Mester said
The next stage is not the time to cut interest rates, although it is markets that are in this situation
- It's about how long we need monetary policy to remain constrained to bring inflation back to the 2% target
- Markets slightly ahead
- Fed policy settings are now in a good place
- But you don't want to inadvertently become more restrictive than you think appropriate.
Those remarks echo Williams' comments on Friday.
It highlights the failure of communication by the Fed to some extent, as it was forced to backtrack on Powell's press conference last week and more than one member who then spoke to try to minimize its consequences.
