Cleveland Fed President says: Inflation is still high, no talk of rate cuts.

On Thursday, 2026 FOMC voter and President of the Cleveland Fed, Loretta Mester, spoke firmly. She emphasized that persistently high inflation is unfavorable for further rate cuts and expressed concerns that monetary policy may not be prepared to tackle the current inflation.
Harker said the Federal Reserve continues to face inflationary pressures above its target, and the current policy setting has almost no restraint on economic growth, so she opposed the decision to cut interest rates last week. She believes that the current economic data and labor market conditions (although weak, the unemployment rate is still low) do not support a rate hike, but if inflation remains elevated, a rate hike may be necessary. #参与创作者认证计划月领$10,000
Harker's hawkish remarks have injected new uncertainty into the market against the backdrop of differing views on policy direction within the Federal Reserve. Traders have priced in the probability of a 25 basis point rate cut in December down to about 70.6%, and U.S. Treasury yields briefly retreated.