It's a 'good time for the Fed to pause' cutting interest rates, says former Cleveland Fed president

Summary

Former Cleveland Fed President Loretta Mester says the Fed should pause its rate-cutting cycle because the economy looks solid, fiscal policy may support growth, and inflation remains above target. She sees little case for cuts in January or March unless labor market data deteriorate. She also discusses the DOJ subpoena of Chair Powell and warns that White House pressure threatens Fed independence.

• Loretta Mester calls it a good time for the Fed to pause rate cuts.
• She cites a strong economy, expected fiscal support, and a low-hiring/low-firing labor market.
• Inflation is stable but still above the Fed's 2% target.
• She sees no case for a January cut and possibly no March cut.
• She notes the Fed has already cut three times into a strengthening economy.
• She discusses the DOJ probe and public support for Powell.
• She warns that repeated White House attacks undermine Fed credibility.
• No specific securities or trades were recommended.