Former Fed Pres Mester: Still room for Fed to make gradual cuts - CNBC interview (update)
- Believes neutral rate is higher than used to be in the past; There is room to go before reaching it.
- Fed Funds rate is high relative to where inflation is currently
- Fed has to be more forward-looking than the market
- I would cut rates by a (further) 25 bps. Stop-and-go is not a good look for the Fed.
- Recent data has not changed the medium-term economic outlook
- Don't think that much has changed in the economy