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Federal Reserve's Harker: High inflation risk, opposes further interest rate cuts

According to ChainCatcher reports, Cleveland Federal Reserve President Loretta Mester stated that high inflation levels are unfavorable for the Federal Reserve to cut interest rates again in 2026. She expressed concern that monetary policy has not adequately prepared to address the current inflation. Mester pointed out that the current monetary policy is almost non-restrictive and there is no clear reason to take further policy actions. She opposed the Fed’s rate cut decision last week and warned that the unemployment rate remains low.

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