Federal Reserve official: Rate hikes have begun to quell US inflation

Growing evidence that high inflation is finally easing shows that the Federal Reserve’s sharp interest rate hikes are working as intended, says Loretta Mester, a key Fed policymaker. But further rate hikes are still needed, she says, to decisively crush the worst inflation bout in four decades.

“We’re beginning to see the kind of actions that we need to see,” Mester, president of the Federal Reserve Bank of Cleveland, says in an interview with The Associated Press. “Good signs that things are moving in the right direction… That’s important input into how we’re thinking about where policy needs to go.”

Other Fed officials, too, have said recently that they were encouraged by a series of milder readings on inflation and wage growth. But Mester’s comments are notable because she is among the more consistently hawkish members of the Fed’s 19-person interest-rate-setting committee. (“Hawks” typically support higher rates to fight inflation, while “doves” tend to favor lower rates to boost employment.)

Never miss breaking news on Israel
Get notifications to stay updated
You're subscribed
Register for free
and continue reading
Registering also lets you comment on articles and helps us improve your experience. It takes just a few seconds.
Already registered? Enter your email to sign in.
Please use the following structure:
Or Continue with
By registering you agree to the terms and conditions. Once registered, you’ll receive our Daily Edition email for free.
Register to continue
Or Continue with
Log in to continue
Sign in or Register
Or Continue with
check your email
Check your email
We sent an email to you at .
It has a link that will sign you in.