report<\/a><\/strong>, Mester acknowledged that it met expectations but raised concerns about a stall in the progress of inflation. This pause could have significant implications for the Fed\u2019s upcoming decisions.<\/p>\nMester expressed concern that inflation has made minimal progress in recent months, noting that this could affect the central bank\u2019s plans. According to her, despite earlier expectations for a reduction in inflation, recent data signals that further tightening could be needed to control inflationary pressures.<\/p>\n
The Federal Reserve’s September forecast had predicted a rate cut by the end of the year, followed by additional cuts in 2024. However, Mester believes this outlook may no longer be applicable, given ongoing economic growth and persistent inflation. She called for a reassessment of the Fed’s monetary policy for the upcoming year, noting that the risks tied to employment are now less significant, allowing the focus to shift to inflation control.<\/p>\n