(further adds to Meester’s point of view)
NEW YORK, Oct 1 (Businesshala) – The Federal Reserve’s terms of raising interest rates could be met by the end of 2022, Cleveland Fed Bank President Loretta Meester said on Friday, adding she expects inflation to return to the central bank’s target. Will come Next year.
“I think we will see progress in the labor market and progress on inflation come back,” Meester said during a virtual panel organized by the Shadow Open Market Committee, reiterating a view shared last week.
Meester said he expects inflation to begin moderating once supply side and demand slack factors ease, with inflation projected to remain above 2% in 2022 and 2023.
The projections the Fed released here after its September meeting showed that policymakers are evenly divided on when they expect a rate hike, with nine out of 18 Fed officials predicting they will get them by 2022. rates may need to be raised.
Meester said he expects inflation expectations to hold up well, but that officials may have to respond if inflation remains high and medium- to long-term inflation expectations continue to rise.
Meester will have a vote on the Fed’s policy-making committee in 2022. (Reporting by Jonelle Marte; Editing by Andrea Ricci)