The Federal Reserve’s aim is to raise rates quickly enough to bring down inflation without pushing the U.S. economy into recession or damaging the strong jobs market, Cleveland Federal Reserve Bank President Loretta Mester signaled on Thursday.
“Currently, labor markets in the U.S. are very tight and inflation is very elevated,” Mester said in remarks prepared for delivery at the University of Akron in Ohio. “Our intent is to reduce accommodation at the pace necessary to bring demand into better balance with constrained supply in order to get inflation under control while sustaining the expansion in economic activity and healthy labor markets.”
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