The president of the Federal Reserve of Cleveland, Loretta Mester, said Tuesday that she supports the half-point hikes in interest rates in the next two meetings of the entity and that she expects them to exceed 2.5% to reduce high inflation.
“The unemployment rate may very well have to go up a little bit, we may have another quarter of negative or slow growth, but that’s going to have to happen if we want to bring inflation down,” Mester told Yahoo Finance.
“I don’t think what is planned to be done with monetary policy, at least in my base case, is going to push the economy into a downturn that is kind of a sustained slowdown,” he added.