The Federal Reserve has yet to reach a point where interest rates are sufficiently restrictive, the president of the Cleveland Fed said, suggesting she favors further tightening in US monetary policy.
“At this point, based on the data I have so far, given how stubborn inflation has been, I can’t say that I’m at a level of the fed funds rate where it’s equally probable that the next move could be an increase or a decrease,” Loretta Mester said in an answer to questions at an event in Dublin Tuesday.
Mester, who doesn’t vote on monetary policy this year, stopped short of explicitly backing a rate increase at the Fed’s June 13-14 meeting, noting that officials will receive a substantial amount of economic data before their next gathering.
Read More : Fed’s Rates Not Restrictive Enough, States Mester