(Reuters) – Federal Reserve Bank of Cleveland President Loretta Mester sees no “compelling” reason to wait to implement another interest rate hike, Financial Times reported on Wednesday.
“I don’t really see a compelling reason to pause,” Mester told FT in an interview.
“I would see more of a compelling case for bringing the rates up and then holding for a while until you get less uncertain about where the economy is going.”
Mester’s comments come after some Fed policymakers hinted they may support a pause in raising rates in June to assess the impact of the U.S. central bank’s policy tightening so far.
Ten straight interest-rate hikes by the Fed have brought the U.S. policy rate to a 5.00%-5.25% range.
Mester also said the debt ceiling deal brokered by President Joe Biden and House Speaker Kevin McCarthy could relieve “a big piece of uncertainty about the economy”.
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The legislation passed an important hurdle late on Tuesday, advancing to the full House of Representatives for debate and an expected vote on Wednesday.
(Reporting by Anirudh Saligrama in Bengaluru; Editing by Tom Hogue)