Fed's Mester: It will take longer to achieve confidence inflation transferring in direction of 2%

  • Monetary policy is well positioned as the Fed reviews more data
  • Risks to inflation side of the mandate have increased
  • Downside risks to growth and hiring have fallen
  • Expects gradual progress on lowering inflation
  • Labor market conditions are strong
  • Current policy will lower inflation
  • Welcomes the latest CPI data as a sign of cooling inflation

These are by-the-book comments as the Fed continues to push the narrative of higher-for-longer rates. But the market is trying to get ahead of them, sensing some weakening of the economy and a potential pivot to cuts.

This article was written by Adam Button at