Fed’s Mester still expects three rate cuts 'later' this year

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The Cleveland Fed president became the latest Fed official to offer assurances about the overall inflation picture while making it clear the central bank is ...

Cleveland Fed President Loretta Mester said Tuesday that she still expects to cut interest rates three times this year, noting that the inflation picture had not "changed very much" despite some hotter-than-expected numbers at the start of 2024.

showed a slight cooling in the Personal Consumption Expenditures index, which is the Fed's preferred inflation gauge Mester said her projection for the number of rate cuts this year is in line with the median for three rate cuts this year— maintaining what she Mester has revised up her projection for economic growth this year based on the latest economic data, though she still expects growth to moderate this year compared with last year’s hot pace.

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