Recession won't stop Fed from raising rates - Mester

Thursday, 29. September 2022 19:40

Federal Reserve Bank of Cleveland President Loretta Mester stated on Thursday that the tightening policy will continue in the event that the country's economy enters a recession.

Speaking at the Policy Panel at the Inflation: Drivers and Dynamics, Mester explained that the policymakers' objective remains to preserve price stability, stressing that the focus remains to do everything possible to achieve the goal.

"If you look at the SAP (Standard Assessment Procedure) you will see there is a growth recession [...] real growth will be under trend [...], and now we're going to be slowing down to well-below 2% growth. Unemployment is going to move up, but it is necessary in order to avoid having even higher costs later on if we don't what it takes now to get to price stability."

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