Central Banks
Fed’s Mester Says Rates Need to Keep Rising to Reduce Inflation
- Fed rates ‘still not even in restrictive territory,’ she says
- Mester says her forecast probably a bit above dot-plot median
Loretta Mester
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Federal Reserve Bank of Cleveland President Loretta Mester said the US central bank, which has already raised its benchmark interest rate by three percentage points this year, has got to keep going to restrain high inflation.
“Real interest rates -- judged by the expectations over the next year of inflation -- have to be in positive territory and held there for a time,” she said Thursday in an interview on CNBC. “We’re still not even in restricted territory on the funds rate.”