Fed’s Mester: A quicker taper gives the central bank room to hike earlier if needed
In an interservice with Bloomberg, Cleveland Fed President Loretta Mester made some hawkish comments on speeding up the taper and likely rates in the next year.
Key quotes
A quicker taper gives the Fed room to hike earlier if needed
Open to the idea of a quicker pace of tapering.
Momentum in the economy is apparent, as shown by rising inflation rates.
The Omicron variant is a new risk, but further research is needed.
The economy has learned to deal with waves of covid waves during the pandemic.
Fed should be capable of hiking rates a couple of time next year if necessary.
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Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
