Fed Mester: Interest rate cuts may begin in June

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