Fed's Mester: Inflation Data Mostly As Expected, Focus Now on Balancing Risks

Inflation data released today was mostly in line with expectations and doesn't change policy outlook significantly

Focus for Fed now is on risk management between inflation and employment as economy evolves

Mester expects some moderation in demand, economic growth, and wage growth in 2023

Mester still sees 3 rate cuts in 2024 as a reasonable baseline if economy evolves as expected

Timing of rate cuts will depend on seeing sustained disinflation and inflation moving back towards 2% target