• Sat. Apr 20th, 2024

Cleveland Fed President Loretta Mester Discusses Slowing Economy and Managing Risks in a Changing Market

BySamantha Jones

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

Cleveland Fed President Loretta Mester discussed the current state of the economy during a recent question-and-answer session. While she noted some signs of slowing, overall, she expects a rebalancing to occur. Mester also mentioned that disinflation can occur even in a strong economic environment. Additionally, she stated that she does not believe the neutral interest rate will be as low as it once was and expects 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 touched on the Fed’s efforts to ensure 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 are still lower than they were 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.

US yields have been mixed and have decreased from their highest levels across all maturities except for the shortest term maturity (2-year yield). The 2-year yield has decreased by about two basis points to reach its current level of 4.695%. Meanwhile, yields on longer maturities such as the 5-year yield (at

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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