• Tue. Apr 23rd, 2024

Cleveland Fed President Mester: Strong Economy, Inflation Concerns, and Discount Window Preparedness

BySamantha Nguyen

Apr 2, 2024
More Mester: Observing Deceleration in the Economy as it Rebalances

In a recent question-and-answer session, Cleveland Fed President Mester discussed the economy and noted some signs of slowing but overall sees a rebalancing occurring. She also mentioned that disinflation can occur even in a strong economic environment. Additionally, Mester stated that she does not believe the neutral interest rate will be as low as it once was and expects to see slower employment growth and a slight uptick in the unemployment rate while healthy labor markets should still be in place. However, she acknowledged that the average family is still struggling with inflation, which is affecting consumer sentiment.

Mester also discussed the Fed’s efforts to ensure that banks are prepared for the discount window and that commercial real estate risks for banks are manageable. In terms of the stock market, US stocks have rebounded from their lowest levels but remain lower than before. The S&P index is down 51.17 points or 0.98% at 5192.39, with the 100-hour moving average at 5198.76. The Dow Industrial Average is down 463 points or 1.17% at 39103.40, and the NASDAQ index is down 214 points at 16182.

Yields in the US have decreased from their highest levels, with the 2-year yield dropping by 2 basis points to reach its current level of 4.695%. The 5-year yield has also decreased slightly to reach its current level of 4.346%, while the 10-year yield has increased by just over two basis points to reach its current level of

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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