18 Feb 2015
June rate-hike to be a viable option – Fed’s Mester
FXStreet (Mumbai) - In an interview with the Wall Street Journal, Cleveland Fed President Loretta Mester urged her fellow policymakers to simplify the language of the official statements, further stating the bank should raise rates in June even despite below-target inflation.
Key Quotes:
"We should try to simplify our statements over time,"
"We talk in code....We would probably do better to be a bit more plain-spoken."
"I want June to be a viable option," she continued, dropping the 'patience' wording.
"That is why I would like to see the language change."
"I’m not as concerned about the inflation forecast,"
"I’m not as concerned that it may take a while to get back to the 2% goal. It is a long-term goal. We’ve had the oil price shock. We’ve had the very deep recession and slow recovery. It seems reasonable to anticipate that it is going to take longer to get back to our inflation goal."
Key Quotes:
"We should try to simplify our statements over time,"
"We talk in code....We would probably do better to be a bit more plain-spoken."
"I want June to be a viable option," she continued, dropping the 'patience' wording.
"That is why I would like to see the language change."
"I’m not as concerned about the inflation forecast,"
"I’m not as concerned that it may take a while to get back to the 2% goal. It is a long-term goal. We’ve had the oil price shock. We’ve had the very deep recession and slow recovery. It seems reasonable to anticipate that it is going to take longer to get back to our inflation goal."