Fed's Mester: Not convinced inflation has peaked yet

Cleveland Federal Reserve Bank President Loretta Mester said on Wednesday that she is not convinced yet that inflation in the US has peaked, as reported by Reuters.

Additional takeaways

"Better for markets to focus on path of interest rates than any one particular meeting."

"Policy should be guided by incoming data as it informs the outlook."

"I will decide my preferred size of rate hike at the September meeting itself."

"Medium and longer-term inflation expectations still in the range consistent with 2% inflation goal but I am very attentive to that."

"Growth rate of wages still higher than what is consistent with 2% inflation."

"Lags in policy are a consideration for the future, not right now with inflation so high."

"Our challenge is to engineer a slow down in activity without causing a recession."

Market reaction

The US Dollar Index edged lower after these comments and was last seen posting small daily losses at 110.20.