Cleveland Federal Reserve Bank president Loretta Mester told the Financial Times (FT) in an interview that markets are a little bit ahead of rate-setters on interest rate cuts. She also noted that the next phase is not when to reduce rates but rather how long the Fed needs monetary policy to remain restrictive to ensure that inflation is on that sustainable and timely path back to 2%.
Mester pointed out that the markets jumped to the end part, which is "we are going to normalize quickly" but she does not see that.