Brief Remarks About the U.S. Economy and Monetary Policy

Loretta Mester

Speech from Federal Reserve Bank of Cleveland

Abstract: It is a real pleasure to speak with the European Economics and Financial Centre once again. I especially look forward to taking your questions because I learn a lot from hearing what is on your mind. Let me help frame our discussion by giving some brief remarks about the U.S. economy and monetary policy. The economy and monetary policy have been on quite a journey since I last spoke to you two years ago. Today, I would say that both the economy and monetary policy are in a good place. Inflation is still above our goal of 2 percent, but it has moved down a lot from its peak in 2022, when inflation hit a 40-year high, in the range of 7 to 9 percent, depending on the measure. Remarkably, this disinflation has occurred in the midst of strong labor markets and economic growth. The FOMC’s job now is to ensure that the economy reaches an even better place by calibrating monetary policy so that inflation returns sustainably to our 2 percent goal and labor markets remain healthy.

Keywords: economic conditions; inflation; monetary policy (search for similar items in EconPapers)
Date: 2024-03-07
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