CLEVELAND (Reuters) - Cleveland Fed President Loretta Mester said on Wednesday the view held by some central bank policymakers that the economy should run “hot” in order to put upward pressure on inflation has risks.
“There is another view of the world that says we should run the economy really hot…I don’t think that’s a very good strategy for the economy going forward,” Mester said during an audience question and answer session in Cleveland, Ohio. “I think it’s a somewhat risky strategy.”
Mester dissented at last week’s Fed decision to leave interest rates unchanged, preferring to take another step in removing accommodation.
Reporting by Lindsay Dunsmuir; Editing by Diane Craft
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