(Reuters) – Cleveland Federal Reserve Bank President Loretta Mester on Thursday pushed back against the idea that by raising interest rates the Fed is prioritizing its goal of achieving 2% inflation over its aim to maximize employment.
“It’s not really a tradeoff right now, it’s really an imperative that we take the action, that we are committed at the FOMC to do that, to get inflation on a downward trajectory,” Mester said during a panel discussion at the University of Akron in Ohio. “If you really want to sustain a healthy economy … a healthy labor market, you’ve got to get back to price stability. …(Inflation) harms the workforce, it harms employment.”
The FOMC, or Federal Open Market Committee, is the Fed’s policy-setting body.
Source : Reuters