Fed’s Mester says:
More likely that current FFR may need to move a bit higher than current level, but possible current hiking cycle is done
- Overall the economy is doing well, sees no urgency to change current monpol stance
- Before moving on rates, fed has time to gather further evidence, but possible current hiking cycle is done
- More likely that current ffr may need to move a bit higher than current level
- Labor markets are strong and underlying inflation consistent with 2% target
- Data of late mixed, point to soft q1 below 2018’s 3% pace
- Q1 weakness likely to be temporary
- Growth for this year likely above my 2% estimate
- Household income continues to grow, reflecting strong labor market
- Labor productivity improving after multi-year slump
- Sentiment readings have improved for businesses, consumers & investors since turn of year
- Postponement of additional imports tariffs from China has reduced some uncertainty
- FOMCs intention is to hold no more assets than necessary to implement monetary policy effectively
- Asset runoff will slow in may and will cease at the end of September
- In time balance sheet will keep pace with the appropriate level of reserves in the system
- Cybersecurity is an important part of financial stability
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