Cleveland Fed President Loretta Mester “Did Not Predict Recession,” Says Inflation Will Fall – Bitcoin News

Cleveland Fed President Loretta Mester sees no recession in the U.S. but thinks it will take two years for inflation to fall back to 2 percent. In an interview on Sunday, Mester explained that while it will take two years, inflation “will come down.”

Cleveland Fed President Loretta Mester says 2% inflation will take 2 years to achieve

Cleveland Federal Reserve Bank President and CEO Loretta Mester discussed U.S. inflation and a slowing economy in an interview with CNBC on Sunday. Growth “is slowing to just below trend,” Mester said, but she doesn’t believe the U.S. is headed for a recession. “We’re not going to see 2 percent inflation right away. It will take a few years, but it will come down,” Mester said in an interview.

Mester explained that the Fed will be looking for evidence that inflation is being controlled by central bank policy. “We’re going to be looking at the monthly change in inflation to get some really good evidence of whether we see inflation first stabilizing and then starting to come back down,” Mester explained. “It will take a while for inflation to come back down to 2 percent. But what we are looking for is that we can see a slowdown in demand, which is very strong.”

The president of the Federal Reserve Bank of Cleveland added:

Getting it back in line with the supply side, as you know, the supply side is constrained, taking some of the pressure off of prices, bringing inflation back down and back to 2% in a sustainable way, which is our inflation target.

While Mester “doesn’t predict a recession,” she believes “recession risks are rising”

When asked if the U.S. was headed for a recession, Mester said she “didn’t predict a recession.” The president of the Cleveland Fed said economic growth is slowing, unemployment is “rising slightly” and the Fed sees “households are really shifting some of their spending” in the U.S. Mester noted that the rate hikes the Fed has been implementing have already had an impact on the housing market. However, Mester said the Fed needs to be cautious about tapering central bank policy gradually.

Master emphasized:

We’re going to have to deal with this pullback in very loose monetary policy very carefully and nimbly. That’s something more economical.

Of course, Meester’s comments were criticized by social media and some compare her statement By February 2008 Ben Bernanke, the 14th chairman of the Federal Reserve, said he did not think there would be a recession, and then the recession of 2008-2010 began to manifest after his statement. While Mester did not predict an impending recession, she said “recession risks are rising.” The head of the Cleveland Fed branch detailed that in addition to the Fed’s monetary policy and rate hikes, “there’s a lot of other stuff going on.”

“The situation in Ukraine, which is a tragedy, really, you know, has led to high oil prices and high oil prices that everyone bears the brunt of,” Mester insisted. Still, the Fed member believes the U.S. central bank has the ability to tame the economy and bring inflation back to 2 percent. “We at the Fed are very committed to using the tools at our disposal to control inflation and get it back to 2%. That’s the number one challenge in the economy right now,” Mester concluded.

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What do you think of Cleveland Fed President Loretta Mester’s view on the U.S. economy? Do you think Mester is right or do you expect a recession in the US? Let us know your thoughts in the comments section below.

Jamie Redman

Jamie Redman is Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.




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