Two years to reduce inflation to 2 percent, predicts Fed's Mester

Wed, 29 Jun 2022

Two years to reduce inflation to 2 percent, predicts Fed's Mester

Robert Besser
24 Jun 2022, 02:53 GMT+10

It will take two years for U.S. inflation to fall to the central bank's 2 percent target, Cleveland Federal Reserve Bank President Loretta Mester said
Surging inflation meant almost all Federal Bank policymakers agreed to the central bank's biggest rate increase in more than a quarter of a century
Mester said that despite slowing growth, she was not expecting a recession

CLEVELAND, Ohio: It will take two years for U.S. inflation to fall to the central bank's 2 percent target, Cleveland Federal Reserve Bank President Loretta Mester has said, adding that inflation will be "moving down" gradually.

Surging inflation, the highest in 40 years, meant almost all Federal Bank policymakers agreed to the central bank's biggest rate increase in more than a quarter of a century, while only one member dissented.

"It is not going to be immediate that we see 2 percent inflation. It will take a couple of years, but it will be moving down," Mester said in an interview with CBS News this week.

But despite slowing growth, she was not expecting a recession, she added.

With regards to forecasts submitted in the past week by participants of the Federal Open Market Committee's meeting, Mester said, "We do have growth slowing to a little bit below trend growth and we do have the unemployment rate moving up a little bit. And that is ok, we want to see some slowing in demand to get it in line with supply."

The Fed's benchmark overnight interest rate, now in the range of 1.5 percent to 1.75 percent, to at least 3.4 percent in the next six months, is expected to be raised by policymakers.

Last year, most said the rate should stay near zero until 2023.

This week, the Fed called its fight against inflation "unconditional."

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Oakland Times.

More Information

55 ℉

Mostly Cloudy in Oakland

United States

Section

Philippines terminates China talks for joint energy exploration

Manila[Philippines], June 25 (ANI): The Philippines has terminated talks with China for a joint energy project in the South China ...

IOC excludes International Boxing Association from Olympic Games Paris 2024

Zurich [Switzerland], June 25 (ANI): The Executive Board (EB) of the International Olympic Committee (IOC) has decided that the boxing ...

Indian Junior Women's Hockey Team set to take on Netherlands in Uniphar U23 five Nations Tournament 2022 final

Dublin [Ireland], June 25 (ANI): The Indian Junior Women's Hockey Team is all set to take on the Netherlands in ...

Biden signs bipartisan bill on gun safety into law

Washington [US], June 25 (ANI): US President Joe Biden on Saturday signed into law a bipartisan gun safety bill in ...

Giant filamentous bacteria found in mangroves of Guadeloupe: Research

Washington [US], June 25 (ANI): Researchers describe the morphological and genomic features of a 'macro' microbe' -- a giant filamentous ...

Reports: LAFC finalizing deal with Welsh star Gareth Bale

Los Angeles FC are finalizing a deal with Welsh superstar Gareth Bale, multiple outlets reported Saturday. The 32-year-old forward will ...

International

Section

UK's Telegraph news block in Russia due to war coverage

MOSCOW, Russia: The UK newspaper, the Telegraph, has been blocked in Russia, following a request from the Russian prosecutor-general.The TASS ...

Airbus captain tries to land at Lahore runway closed two years ago

LAHORE, Pakistan - An Airbus 320 carrying 171 passengers narrowly avoided an accident at Allama Iqbal International Airport, Pakistan's second-largest ...

Biden vows to combat effects of Supreme Court decision on Roe v. Wade

WASHINGTON, DC - U.S. President Joe Biden on Friday vowed to "do all in my power" to protect a woman's ...

Myanmar junta minister discusses nuclear cooperation with Russia

YANGON, Myanmar - According to military-run media, a junta delegation discussed nuclear technology collaboration with a Russian state-owned atomic energy ...

U.S. to provide Tk2.3 crore as emergency funding for northern Bangladesh

DHAKA, Bangladesh - The United States Agency for International Development (USAID) is providing more than Tk2.3 crore in emergency funding ...

661 pound freshwater fish caught in Cambodia river

PHNOM PENH, Cambodia: Cambodian villagers on the Mekong River have caught a stingray fish weighing 661 pounds, which is the ...

Movie Review

War for the Planet of the Apes