Atlanta Federal Reserve President Rafael Bostic and Cleveland Federal Reserve President Loretta Mester are offering slightly different takes on the Fed’s rate path. At a speech in Chicago, Mester said that “monetary policy is in a good place for policymakers to assess incoming information,” but she left the door open to further rates hikes saying “whether the fed funds rate needs to go higher than its current level and for how long policy needs to remain restrictive will depend importantly on whether the economy is evolving as expected.” Bostic was more optimistic, writing in essay that he believes inflation is coming down, and that “tighter monetary policy and tighter financial conditions more broadly are biting harder into economic activity. At the same time, I don’t think we’ve seen the full effects of restrictive policy.”
Yahoo Finance Fed Reporter Jennifer Schonberger breaks down the Fed presidents’ comments.
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