Fed to cut US rates 'at some point, but no hurry, Mester says
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Cleveland Federal Reserve Bank President Loretta Mester expects price pressures to ease further this year, allowing the Fed to reduce borrowing costs, but only when it is "pretty confident" inflation is heading sustainably to its 2% goal. Inflation so far this year has run higher than expected, with the personal consumption expenditures price index running at 2.5%, and core PCE at near 3% over the last six months on an annualized basis. Mester's comments mark a retreat from her expectation just two weeks ago that the Fed will likely begin cutting the policy rate from its current 5.25%-5% range "later this year." Other Fed officials have made similar rhetorical pivots away from guidance on the timing of rate cuts, with Fed Chair Jerome Powell on Tuesday signaling rates may stay higher for longer. Financial markets have adjusted their expectations accordingly, with traders now pricing a first rate cut in September and only a 50-50 chance of one more quarter-point cut before the end of this year.

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https://www.investing.com/news/economy/fed-to-cut-us-rates-at-some-point-but-no-hurry-mester-says-3383504