Word is that in some cities we are even starting to see wage growth. That’s new.
What Ms. Mester is saying here is – expect interest rates to rise. So, if you are thinking about buying a house, pay attention.
Generally, the interest rate prognosticators are saying that the Fed will raise rates twice this year by a quarter percent each time. I am going to go out on a limb and prognosticate myself. I say 3 hikes of .25% by the end of 2018.
You heard it here first. Alert the trading pits.
Speaking the same day that the government reported that nonfarm payrolls rose by just 148,000 last month — compared to expectations of 190,000, the central bank official said one month’s disappointment doesn’t change the larger picture.
“I think it’s a strong report,” Mester told CNBC in a live interview from Philadelphia. “I think we’re basically at maximum employment from the view of monetary policy. But that doesn’t mean it triggers a necessary reaction.”
Mester has been one of the central bank’s more hawkish members. She will be a voting member this year on the Federal Open Market Committee, which sets monetary policy for the Fed.