Fed’s Mester says no ‘compelling’ reason to pause rate hikes -FT

Federal Reserve Bank of Cleveland President Loretta Mester sees no “compelling” reason to wait to implement another interest rate hike, Financial Times reported on Wednesday.

“I don’t really see a compelling reason to pause,” Mester told FT in an interview.

“I would see more of a compelling case for bringing the rates up and then holding for a while until you get less uncertain about where the economy is going.”

Mester’s comments come after some Fed policymakers hinted they may support a pause in raising rates in June to assess the impact of the U.S. central bank’s policy tightening so far.

Ten straight interest-rate hikes by the Fed have brought the U.S. policy rate to a 5.0-5.25 percent range.

Mester also said the debt ceiling deal brokered by President Joe Biden and House Speaker Kevin McCarthy could relieve “a big piece of uncertainty about the economy”.

The legislation passed an important hurdle late on Tuesday, advancing to the full House of Representatives for debate and an expected vote on Wednesday.

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