In a recent speech, Fed Governor Mester responded to concerns about threats to monetary policy, stating that inflation levels in the US won't be affected by external pressures. She noted that the Fed considers multiple risk factors when setting policy and will continue working to maintain economic stability.
Policy Stance Remains Strong
Mester emphasized that the Fed's decision-making process is based on thorough data analysis rather than short-term pressures or political influences. She believes the current monetary policy is well-equipped to handle any potential challenges and support long-term economic growth.
Inflation Outlook Positive
While recent market concerns have focused on inflation trends, Mester pointed out that inflation expectations in the US remain well-contained. She stated that the Fed will continue to monitor economic developments closely and take flexible actions if needed to address emerging risks.