Fed's Mester: Monetary policy is in a good place. Fed can cut later this year.

<p>Fed's Mester is on the wires saying:</p><ul><li>Monetary policy in good place to assess what’s next for rates</li><li>Fed can lower rates later this year if economy performs as expected</li><li>When Fed cuts rates will likely be at gradual pace</li><li>If inflation doesn't fall Fed can maintain current policy</li><li>Inflation must be moving sustainably lower to open rate cut door</li><li>Expects to move back to 2% inflation over time</li><li>Sees growth and employment moderating this year</li><li>Must be attentive to risk labor market will cool faster-than-expected</li><li>Recent news on inflation has been ‘encouraging’</li><li>Can't be sure last stage of move to 2% inflation will be swift</li><li>So far Red Sea trouble hasn’t rattled supply chains</li><li>It would be mistake to cut rates prematurely</li><li>Possible inflation may be more persistent than expected</li><li>Wage gains still too high for getting to 2% inflation</li><li>Higher productivity levels may change wage-inflation calculus</li></ul><p>Mester is a voting member on the Fed this year, but will also be retiring from the Fed in July.</p>

This article was written by Greg Michalowski at www.forexlive.com.