The Federal Reserve has yet to reach a sufficiently restrictive level of interest rates. This was stated by Loretta Mester, president of the Cleveland Fed, suggesting her preference for a further tightening of US monetary policy.
“At this point, based on the data observed so far and given the stubborn inflation, it cannot be said that rates are at a level where at the next meeting a rate hike or rate decrease is equally likely,” he said. declared Loretta Mester.
Mester, who does not vote on monetary policy this year, however did not expressly support a rate hike at the next meeting on June 13-14, noting that various economic data will be released before the meeting.
Analysts’ expectations are for a pause in the restrictive cycle, after the latest adjustment of 25 bp which brought the cost of money in the range between 5% and 5.25%.