Fed's Mester Cautious on 2024 Rate Cuts, Wants More Proof of Slowing Inflation
- Fed's Mester wants more data showing inflation is slowing before supporting rate cuts in 2024
- Recent inflation figures align with Mester's expectations for slower disinflation pace
- Mester believes 3 rate cuts in 2024 is still likely appropriate, but it's a "close call" on whether fewer will be needed
- Mester doesn't think she'll support a rate cut at April/May meeting, but won't rule it out for June
- Mester says bigger risk now is cutting rates too early given economic strength; rate hikes should remain restrictive if inflation stalls
