Fed still has room to raise interest rates, tightening is final = Cleveland Fed President | Reuters

[ニューヨーク 20日 ロイター] – Cleveland Federal Reserve Bank President Loretta Mester said Monday that the Federal Reserve still has room to raise interest rates, and that aggressive monetary tightening since last year is coming to an end.

In a transcript of a speech given in Akron, Ohio, Mester said, “Demand still exceeds supply in the product and labor markets, and inflation is still too high. We will continue to push inflation down to 2%. “We believe that monetary policy will need to move into a more restrictive area this year in order to keep the economy moving.”

But he also noted that the tightening period “is much closer to the end than the beginning” as the supply-demand imbalance is improving and the cumulative effect of rate rises has been seen. He also said that the rate rise would depend on the economy.

Mester will not vote at this year’s Federal Open Market Committee (FOMC) meeting.

He said banking problems could lead to a tightening of financial conditions and influence the Fed’s policy decisions. Highlighting the need to be “cautious” in conducting policy, he said such changes in financial conditions would “work in the same direction as monetary tightening,” and that the Fed would “adjust course appropriate monetary policy in the future.” I needed to understand the situation.

The unemployment rate is expected to rise to 4.5-4.75% from the current 3.5%, he said. Inflation is expected to slow to 3.75% by the end of the year and return to the Fed’s 2% target in 2025.

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