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Fed Member Details

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Loretta Mester

President, Federal Reserve Bank of Cleveland

Policy Stance Hawkish
Voting Member No
Date Assumed Current Office 01/01/2014
Rate Outlook
The Federal Reserve should think about raising interest rates at its June meeting despite first quarter weakness, Mester said in early May. “We have quite a bit of data coming out between now and the June meeting, and I’m going to be particularly attentive to that data,” especially when it comes to job market numbers, Ms. Mester said. “I can be agnostic at this point and just wait for the data to come in,” and then decide on what the right policy for rates will be, she said. In March, she said "It would be appropriate to raise interest rates sometime this year. We are not going to necessarily move in June but it gives us June as a viable option.” She is unworried about problems in the oil sector and the rapid rise in the dollar. “The headwinds we have been suffering through are abating, financially both consumers and business balance sheets look good, banks are recapitalized,” she said. “So I see some strength of the economy.”
Biography
Mester, 55, earned her PhD in economics from Princeton University, where she held a National Science Foundation Fellowship. Said to be an expert in banking and finance issues, Mester worked as chief policy adviser to Philadelphia Fed President Charles Plosser since 2006. In a February 2013 presentation at a Princeton conference, she said the Fed has often in the past “waited too long” to raise interest rates, the Wall Street Journal reports. She is an Editor of the Journal of Banking and Finance and an associate editor of the Journal of Financial Intermediation. Mester is also an adjunct professor of finance at the Wharton School, University of Pennsylvania, and a Fellow in the Wharton Financial Institutions Center.