Federal Reserve Bank of Cleveland President Loretta Mester said in an interview with CNBC on Friday that the personal consumption expenditures (PCE) price index released on Friday underscored the slow development of inflation.
Breakout: US Core PCE inflation rises to 4.7% vs. expected 4.6%.
“It’s probably not wise to predict in advance what the outcome of the negotiations will be,” Mester said when asked if another rate hike was warranted at the upcoming FOMC meeting.
Key things
“Tighter monetary policy continues to add to the economy.”
“I may have to adjust my inflation forecast.
“Everything is on the table at the June FOMC meeting.”
“The Fed is very committed to reducing inflation in a timely manner.”
“The Fed still has more data to watch before the June FOMC meeting.”
“I don’t see many signs of bank stress affecting credit conditions.”
“The economy has slowed quite a bit compared to last year.”
“It’s important for the Fed not to tighten monetary policy.”
“Right now, that’s the hard part of the monetary policy decision.”
Market reaction
The American dollar The index remains in the positive zone above 104.30 after these comments.
