The outgoing president of the Cleveland Federal Reserve welcomed this week’s data pointing to lower inflation readings but warned that the central bank has to “see that continue a bit longer” before it can consider cutting interest rates.
In an interview this morning with CNBC, Loretta J. Mester was the first Fed official to speak about rates following Wednesday’s vote by the central bank’s Federal Open Market Committee to hold rates steady.
“We have to be happy that we’re starting to see inflation move back down again after stalling a bit in the first part of the year,” Mester said.
Mester’s tenure at the Cleveland Fed ends on June 30, as per Federal Reserve mandatory age and length-of-service policies. Cleveland Fed First Vice President Mark S. Meder will serve as interim leader until Beth M. Hammack steps in as president – at which point, she will also become a voting member of the FOMC.
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