Fed’s Mester backs 75 bps hike in July if economic conditions remain same – CNBC

FILE PHOTO: Cleveland Federal Reserve Bank President Loretta Mester speaks in London

(Reuters) – Cleveland Federal Reserve Bank President Loretta Mester told CNBC on Wednesday if economic conditions remain the same, she will advocate for a 75 basis points (bps) hike in interest rates at the U.S. central bank’s next monetary policy meeting in July.

July’s meeting will likely involve a debate among Federal Open Market Committee (FOMC) policymakers over whether to opt for 50 bps or 75 bps, Mester said in an interview https://www.cnbc.com/2022/06/29/feds-mester-backs-75-basis-point-hike-in-july-if-conditions-remain-the-same.html?utm_term=Autofeed&utm_medium=Social&utm_content=Main&utm_source=Twitter#Echobox=1656489523 to CNBC.

“If conditions were exactly the way they were today going into that meeting β€” if the meeting were today β€” I would be advocating for 75 (bps) because I haven’t seen the kind of numbers on the inflation side that I need to see in order to think that we can go back to a 50 (bps) increase,” she said.

(Reporting by Jahnavi Nidumolu in Bengaluru; editing by Uttaresh.V)