Fed's Mester Cautious on Inflation and Rate Hikes

Cleveland Federal Reserve President Loretta Mester wants to see more evidence that inflation is under control before considering further interest rate hikes. Recent reports showed that consumer prices were unchanged in October, while wholesale prices fell 0.5%. Despite falling below the Fed's 2% inflation goal, the consumer price index remains at 3.2%. Market pricing in the futures market now suggests the possibility of four quarter percentage point rate cuts next year. Mester, who will retire in midyear, has not yet made up her mind about the future direction of interest rates.