Fed’s Mester warns high rents mean inflation may not yet have peaked
2022.09.08 00:43
FILE PHOTO: Cleveland Federal Reserve President and CEO Loretta Mester gives her keynote address at the 2014 Financial Stability Conference in Washington December 5, 2014. REUTERS/Gary Cameron/File Photo
(Reuters) – The high cost of rental accommodation in the United States has not yet fully filtered through to inflation measures, suggesting inflation may still rise further, Cleveland Federal Reserve Bank President Loretta Mester said on Wednesday
“I’m not even convinced that inflation’s peaked yet,” Mester said in a webcast with Market News International, saying her focus is on the services sector. “That tends to be much more persistent and rents are still very elevated and it takes a while for rents to show up in underlying inflation. There’s still more that’s going to show up on that side…I haven’t seen much in the way of suggesting that’s starting to come back down.”
