Mester Says Rates Are Not Coming Down Next Year

Cleveland Fed President Loretta Mester gave a hawkish speech Monday saying that inflation is "unacceptably high" and that "when there is uncertainty, it can be better for policymakers to act more aggressively because aggressive and preemptive action can prevent the worst case outcomes." She added that she would be "very cautious" when assessing inflation, saying she would need to see several months of MoM declines in the inflation rate to be convinced of it peaking.

The Fed last week increased its policy rate by 75bps and raised its peak target rate to 4.6%.