Former Fed policymaker Mester sees fewer rate cuts next year after Trump's victory

Source: CNBC

The U.S. Federal Reserve could carry out fewer interest rate cuts than previously expected next year should President-elect Donald Trump’s proposed global tariffs take hold, former Fed policymaker Loretta Mester said Tuesday.

Mester indicated that the Fed’s outlook was set to change under the incoming Republican administration’s fiscal plans, and that markets may be right in forecasting fewer than the four reductions previously forecast.

“Next year, the pace of the cuts will be affected by where they’re seeing fiscal policy,” she said during a panel at the annual UBS European Conference hosted in London.

“My own view is the market is right, they’re probably not going to have as many cuts next year as was assumed or expected in September,” added Mester, who was president of the Cleveland Federal Reserve until her retirement earlier this year.

Read more: https://www.cnbc.com/2024/11/12/ex-cleveland-fed-president-mester-sees-fewer-rate-cuts-after-trump-win.html