Fed's Mester: No Urgent Need for Fed to Cut Rates This Year

Odaily News Cleveland Fed President Loretta Mester said on Tuesday that, against the backdrop of a "cautiously optimistic" view on economic activity, there is no urgent need for the Federal Reserve to adjust its interest rate policy stance this year. Given the likely outlook, "we could maintain the current setting of the target range for the federal funds rate for quite some time." She stated, "I think we are in a good position to hold the federal funds rate at its current level and watch how the situation evolves," adding that monetary policy is most likely approaching a stance that neither restrains nor stimulates economic activity. "Rather than trying to fine-tune interest rates, I prefer to be patient while assessing the impact of recent rate cuts and observing economic performance." Mester noted that the economic outlook remains positive but also emphasized that inflation is still "too high," stating that it is crucial for price pressures to subside given the risk that inflation may linger around 3% this year. Regarding hiring, relevant information indicates the current situation is relatively stable.