NEW YORK – The terms of the Federal Reserve raising interest rates could be met by the end of 2022, Cleveland Fed Bank President Loretta Meester said Friday, adding she expects inflation to return to the central bank’s target 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 ease as supply-side and demand-side factors ease, with inflation projected to remain above 2 percent in 2022 and 2023.
The Fed’s projections, released after the September meeting, showed that policymakers are evenly divided on when they expect to raise rates, with nine out of 18 Fed officials predicting they should raise rates in 2022. may be required.
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.
This News Originally From – The Epoch Times