Fed's Mester: Inflation has not yet peaked

Fed's Mester: Inflation has not yet peaked
Photo by drown_ in_city / Unsplash

It will take us a few months to see a steady decline in indicators. Only after that will we determine with certainty the peak in inflation.

At the next two meetings, the Fed will be in a good position to consider the appropriate pace of further rate hikes and assess how high the final rates should be.

The discount rate should probably rise above 2.5%. However, we can't do that today. It all depends on how much demand declines and what happens to supply. Raising rates and reducing the balance sheet should reduce demand in the economy.

Do you have a fast connection?

Check it out!!!