Fed’s Mester says inflation hasn’t peaked and multiple half-point rate hikes are needed

• Cleveland Federal Reserve President Loretta Mester said on Friday (June 3rd, 2022) that there is not ample evidence that inflation has peaked and thus is on board with supporting a series of aggressive interest rate increases. 
• While other recent data points have shown that at least the rate of inflation increases has diminished, the policymaker has highlighted the importance of having multiple months of this trend before accurately stating that inflation has already peaked. 
• The recent statements from the rate-setting Federal Open Market Committee indicated that 50 basis point rate increases are likely at the June and July meetings. Officials are then likely to evaluate the progress that the policy tightening and other factors have had on inflation. Mester said any pause in rate hikes was unlikely, although the scope of the hike could be scaled down.

(Source: CNBC)