The central bank official noted progress made on inflation while the economy has continued to grow.
Cleveland Fed President Loretta Mester said Tuesday she still expects interest rate cuts this year but ruled out the next policy meeting in May.
Cleveland Federal Reserve President Loretta Mester said Tuesday she still expects interest rate cuts this year, but ruled out the next policy meeting in May. Should that continue, rate cuts are likely, though she didn't offer any guidance on timing or extent."I continue to think that the most likely scenario is that inflation will continue on its downward trajectory to 2 percent over time.
"I do not expect I will have enough information by the time of the FOMC's next meeting to make that determination," Mester said.in a range between 5.25%-5.5%, where it has been since July 2023. The post-meeting statement echoed Mester's remarks that the committee needs to see more evidence that inflation is progressing toward the 2% target before it will start reducing rates.
Futures traders expect the Fed to start easing in June and to cut by three quarters of a percentage point by the end of the year.
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