Mester Pushes Back On 75bp Hike
Apr-22 19:24By: Chris Harrison
Oil Bullets+ 2
Cleveland Fed's Mester, a '22 voter, pushes back on the growing clamor for a 75bp hike, saying she prefers a methodical approach involving 50bps to get to neutral of around 2.5%. No immediate move in Fed Funds futures pricing for the June meeting, still showing 110bps after a strong rise today, but talk of playing down 75bps helps see a bounce in ESM2.
Bloomberg headlines:
- MESTER: WANT TO RAISE RATES TO NEUTRAL BY YEAR END, AROUND 2.5%
- ASKED ABOUT 75 BPS, MESTER SAYS FED DOES NOT `NEED TO GO THERE'
- MESTER: FAVOR A METHODICAL RATHER THAN OVERLY-AGGRESSIVE PATH
- MESTER REPEATS SHE FAVORS 50 BPS HIKE, FRONT-LOADING POLICY
- MESTER:GETTING RATES TO 2.5% THIS YR TO TAKE A FEW 50 BPS HIKES
- MESTER: FED HAS TO BE RESOLUTE AND INTENTIONAL
- MESTER: MAY NEED ABOVE-NEUTRAL RATES IF PRICES DON’T EASE
Trending Top
Mar-27 20:13
