Introduces Loretta Mester and asks where she stands on the survey showing 87% expect Fed to cut rates vs. 45% who think they should.
speaker1
Loretta Mester
Thinks the Fed will definitely cut this week as signaled by President Williams, but hopes they signal a slowdown in cuts afterward due to inflation risks.
Asks if she thinks this is the last cut, referencing her 'last cut' comment.
speaker1
Loretta Mester
Hopes they pause to assess the economy; policy should be driven by the economic outlook, not just counting dissents.
References Mike Wilson's bullish market outlook and his view that inflation is the biggest risk. Asks if the Fed should raise rates to attack inflation.
speaker1
Loretta Mester
Not at this point; they must balance the mandate. The insurance cut this week is appropriate, but they cannot continue cutting into accommodative territory.
Asks how the Fed measures and incorporates AI-driven productivity gains into its outlook.
speaker1
Loretta Mester
The Fed should incorporate productivity trends into its forecast, and then adjust policy if data diverges from that outlook.
Questions trust in economic data given lags and accuracy concerns.
speaker1
Loretta Mester
The Fed collects excellent real-time information through its Reserve Banks, which informs the outlook and policy.