Federal Reserve Chairman Hamack: Monetary policy is in good condition, it is appropriate to maintain interest rates unchanged.

Cleveland Fed President Mester said she believes monetary policy is in a good position to keep interest rates unchanged. Mester said at a banking and monetary policy event in Ohio on Tuesday that, based on her projections, the Fed can afford to be patient as it evaluates the impact of recent rate cuts. "Based on my outlook, we can afford to be on hold for quite some time," she wrote in her prepared remarks. Mester believes that the federal funds rate is currently near a neutral level, meaning it is not significantly restraining the economy. She said recent signs in the labor market suggest stability as the Fed balances its dual mandate of maximizing employment and maintaining price stability. On the other hand, she noted that inflation remains elevated. Mester said that while tariffs remain a top concern for many businesses, they are not the only source of inflationary pressure. Rising costs in areas such as healthcare and electricity are also pushing up costs, and it is too early to say if these broad cost pressures have peaked.