US Fed’s Mester backs 75-bp hike if economic conditions stay the same

Cleveland Federal Reserve Bank President Loretta Mester told CNBC on Wednesday if economic conditions remain the same, she will advocate for a 75- basis-point (bp) hike in interest rates at the US central bank’s next monetary policy meeting in July.

July’s meeting will likely involve a debate among Federal Open Market Committee (FOMC) policy makers over whether to opt for 50 bps or 75 bps, Ms. Mester said in an interview to CNBC.

“If conditions were exactly the way they were today going into that meeting — if the meeting were today — I would be advocating for 75 (bps) because I haven’t seen the kind of numbers on the inflation side that I need to see in order to think that we can go back to a 50 (bps) increase,” she said. — Reuters