Federal Reserve Maester: May initiate interest rate cuts in June

Cleveland Fed Chairman Mester said on Tuesday that if data supports, the June policy meeting may be the time for the start of loose policy. "If the economy continues to develop as expected, inflation continues to fall towards 2%, and the labor market and economic growth remain stable, then I believe it is appropriate to start lowering the federal funds rate later this year," Mester said. She also expects to not receive enough information before the next meeting (May) to make a decision to lower interest rates. "But by the time the meeting is held from June 11th to 12th, the situation may change," she said after her speech. "We must rely on data, so I don't want to rule out this possibility." Mester will retire in June and is currently the FOMC voting committee.