Fed's Mester: Expectation of three rate cuts this year is no longer appropriate

Cleveland Fed President Mester said on Monday that she believes the Fed's monetary policy is restrictive and that inflation will fall back towards the Fed's 2% target, but not quickly. Mester previously believed that the Fed could cut interest rates three times this year, but "based on the economic developments I currently see, I think this is no longer appropriate," she said. "Given the stagnation of first-quarter inflation progress and the rising inflation risk, frankly, the actual situation is stronger than I expected."