Speech by Fed’s Mester on ‘perspectives on cybersecurity, the financial system, and the Federal Reserve’

Fed’s Mester says:

More likely that current FFR may need to move a bit higher than current level, but possible current hiking cycle is done

• Overall the economy is doing well, sees no urgency to change current monpol stance
• Before moving on rates, fed has time to gather further evidence, but possible current hiking cycle is done
• More likely that current ffr may need to move a bit higher than current level
• Labor markets are strong and underlying inflation consistent with 2% target
• Data of late mixed, point to soft q1 below 2018’s 3% pace
• Q1 weakness likely to be temporary
• Growth for this year likely above my 2% estimate
• Household income continues to grow, reflecting strong labor market
• Labor productivity improving after multi-year slump
• Sentiment readings have improved for businesses, consumers & investors since turn of year
• Postponement of additional imports tariffs from China has reduced some uncertainty
• FOMCs intention is to hold no more assets than necessary to implement monetary policy effectively
• Asset runoff will slow in may and will cease at the end of September
• In time balance sheet will keep pace with the appropriate level of reserves in the system
• Cybersecurity is an important part of financial stability