Mester Warns Against Premature Interest Rate Cuts, Highlighting Inflation Concerns

Federal Reserve President Loretta Mester has issued a strong warning against further interest rate cuts, citing persistent inflation exceeding the Fed’s 2% target. Her statement emphasizes the risks of lowering rates prematurely, even while acknowledging that inflation is currently high, and could lead to risky financial market behavior and prolonged inflationary pressures. Mester’s remarks are particularly impactful as they suggest a potential for longer-term effects on economic stability, potentially influencing financial markets including cryptocurrencies like Bitcoin and Ethereum.