Fed’s Mester not expecting interest rate cut early in 2024

On Tuesday, another round of Fed speakes are attracting the attention of traders, investors and market participants. “We will certainly not continue to raise interest rates until inflation has already fallen to 2%,” Cleveland Federal Reserve President Loretta Mester said.


“Nor will we wait to lower interest rates until inflation is at 2%,” Mester added and noted that she does not currently expect that they will cut interest rates early next year.

The US Dollar Index preserves its bullish momentum after these comments and was last seen rising 0.7% on the day at 104.87.

When asked about whether it is better to do too much than too little in case of doubt, “we still have quite strong demand at the moment. And the same goes for the labour market. I think the cost of undershooting in monetary policy at the moment is still higher than the costs of overshooting,” she responded.