Mester: The labor market is ‘strong’ and at ‘maximum employment’

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.

(From CNBC)

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.

Click here for the article.