Fed’s Mester says the FOMC should act more quickly than in the previous tightening episode

  • Fed should move more quickly than in the prior tightening cycle
  • the pace of tightening should be drive by data and also forward-looking
  • supports a March rate hike
  • anticipates additional rate hikes in the months following
  • sees inflation above 2% in 2022-23 and further upside risk
  • FOMC can quicken H2 tightening pace if

    Read this Term does not ease back

  • Fed should stop providing explicit forward guidance on policy

Mester is speaking on her economic outlook and monetary policy before a virtual event of the Volatility and Risk Institute and the Center for the Global Economy and Business, NYU Stern School of Business

Federal Reserve Bank of Cleveland President Loretta Mester


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