Federal Reserve Bank of Cleveland President Loretta Mester emphasized that US inflation remains too high, despite recent gains.

She emphasized the importance of regularly monitoring markets and economic data to inform future policy decisions.

Mester emphasized the need for policymakers to balance the labor market and employment while maintaining a tightening monetary policy.

The Fed raised its benchmark rate to 5.25% to 5.5% in July, the highest level in 22 years.

Mester acknowledged that policymakers need to manage risks and intertemporal costs of over- and under-tightening monetary policy.