Fed’s Mester says the policy will remain accommodative for some time

© Reuters. FILE PHOTO: Loretta Mester, President and CEO of the Cleveland Federal Reserve, delivers her keynote address at the 2014 Financial Stability Conference in Washington on December 5, 2014. REUTERS / Gary Cameron

(Reuters) – The economic outlook is brighter, but more improvements are needed before the Federal Reserve cuts monetary support, Cleveland Fed Bank president Loretta Mester said Thursday.

The U.S. economy is still more than 8 million job shortages before the pandemic and inflation is expected to ease in the next few months after a temporary spike, Mester said during a virtual chat.

Even after the Fed begins to cut its asset purchases by $ 120 billion a month, it will continue to buy bonds and policies will be accommodative for a while, she said.

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