More from Fed’s Mester – Fed will take action to keep inflation under control

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.


says the FOMC should act more quickly than in the previous tightening episode

Now Q&A:

  • FOMC still discussing its plan for balance sheet runoff
  • Fed will take action to keep

    Read this Term under control and keep long-term inflation expectations anchored

  • Fed balance sheet reduction will happen as the Fed removes accommodation via the funds rate
  • primary tool for adjusting policy is the funds rate
  • Fed may need to change the pace of b/s reduction if their is a concern over financial stabiliuty

mester Federal Reserve


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