Fed's Mester: We are beginning to see inflation transfer down once more after stalling

  • You can see our policy affect the economy, cited housing, growth and labor market
  • The question is whether it’s sufficiently restrictive
  • We are seeing the labor market coming into better balance
  • I would want to see ‘a few more months’ of better inflation data
  • At some point you need to worry about the other side of the mandate
  • It’s important not to wait too long to cut rates
  • I’m pretty confident the committee is doing good work (and won’t miss the turn in the economy)
  • I can tell you that in 39 years, politics doesn’t come into that room

Mester is set to retire next month so her comments about a ‘few months’ more of data ring a bit hollow. That said, they certainly represent the vast majority of Fed officials who want to see more data.

This article was written by Adam Button at