Cleveland Fed Governor Loretta Mester said the conflict in Ukraine could impact the U.S. economy in the medium term and should be taken into account by Fed policy makers when removing accommodation. rice field.
Such geopolitical events could exacerbate inflation and hurt economic growth in the short term, Mester said, who voted for this year’s monetary policy decision.
“The impact of Ukraine’s developments on the U.S. medium-term economic outlook will also be a consideration when deciding on the right pace to remove accommodation,” Mester said for a virtual event hosted by Lions. Said in the prepared remarks. And the University of Delaware.
Mr Mester reiterated the view that the pace of rising interest rates depends on inflation, which should accelerate if inflation is not mitigated by mid-year and slow if inflation falls faster than expected. ..
The Federal Reserve expects inflation to ease this year as demand eases and capacity constraints are lifted, but remains above 2% this year and next. Stated.
By Jonnelle Marte