Cleveland Fed's Mester reiterated she sees no urgency to change the policy stance
Cleveland Fed's Mester reiterated she sees no urgency to change the policy stance, in her speech on Perspectives on Cybersecurity, the Financial System, and the Federal Reserve. She said it is possible the Fed is done with rate increases this cycle, But, she added if, as she expected, growth were to pick back up "to, or slightly above, trend, labor markets remaining strong, and inflation staying near 2 percent — the fed funds rate may need to move a bit higher than current levels." Like Harker, Mester also has hawkish leanings, but is not a voter, reducing her significance on the policy stance. She reiterated the March FOMC statements that QT would slow in May and would cease at the end of September. And she said the Fed plans to return its portfolio to holding mainly Treasury securities and will be making decisions on how to best make the transition in coming meetings.