Federal Reserve’s Mester
Federal Reserve official Loretta Mester indicated that she may favor additional interest rate cuts if employment risks increase while inflation remains under control. Mester emphasized that current economic challenges could warrant a reconsideration of monetary policy. She acknowledged that the labor market is facing heightened uncertainties, which could impact economic stability. If inflation is managed effectively, Mester suggested that the Fed might pursue further rate reductions to support the economy. The balance between employment risks and inflation control will be crucial in guiding future monetary policy decisions.
