Recent market turmoil has gotten the attention of Loretta Mester, president of the Federal Reserve Bank of Cleveland, but it hasn’t altered her view that the U.S. economy is ready for a modest increase in interest rates, she said in an interview with The Wall Street Journal.
The Fed is preparing for a Sept. 16-17 policy meeting and considering whether to raise short-term interest rates from near zero. Mester’s comments suggested she could support a move despite uncertainties at the Fed about whether the U.S. economy will be stung by turbulence in financial markets and overseas economies, though she isn’t prepared to commit.
“I want to take the time I have between now and the September meeting to evaluate all the economic information that’s come in, including recent volatility in markets and the reasons behind that,” Mester said. “But it hasn’t so far changed my basic outlook that the U.S. economy is solid and it could support an increase in interest rates.”
With all the recent great economic news ( cough ) if they were committed to raising rates in my opinion they would have done so already, after all for the last seven years all we've read about is how this new great economic expansion is coming together any day now...how much further do they expect the economy to expand before they actually do raise rates? just another charade.
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