Fed Meister: Expectations of three rate cuts this year are no longer appropriate

Ms Mester, the president of the Cleveland Fed, said on Monday that she thought the Fed's monetary policy was restrictive and that inflation would fall back towards the Fed's 2 per cent target, but not quickly. Ms Mester had previously thought the Fed could cut interest rates three times this year, but "based on the evolution of the economy that I've seen so far, I don't think that's appropriate anymore," she said. "Given the stagnant progress in inflation in Quarter 1, inflation risks have risen and frankly things are a bit stronger than I expected."