Comments from the Cleveland Fed President:
- She sees inflation risks to the upside
- If you see long run inflation expectations move up that is a sign monetary policy is too accommodative but right now we don’t see that
- Expects inflation will start to come down as supply side issues fade
- Repeats that she expects taper to begin in November
This isn’t surprising from Mester but I’m watching for hawks to shift even more hawkishly.