Wednesday, February 14, 2018

Loretta Mester Under Consideration for Federal Reserve Vice-Chair

The White House is considering appointing Loretta Mester, president of the Federal Reserve Bank of Cleveland, as vice-chair of the US Federal Reserve’s board of governors, reports the Financial Times.

Mester is a former director of research at the Federal Reserve Bank of Philadelphia. She has tended toward advocating rate rises despite the low inflation readings. Though, I doubt she would come anywhere near calling for rate hikes at this time that would slow developing price inflation.

Mester is one of two regional Fed presidents who have been considered for Fed vice-chair. The other is John Williams of San Francisco Federal Reserve Bank.

Because the new Fed chairman, Jay Powell, is not an economist the vice-chair could have a significant role in influencing Fed policy.

Williams would be more of an easy money advocate than Mester.


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