Disinflation may trigger recession, say Mester and Jefferson

Fed president and governor acknowledge policy tightening is uncertain and costly

Philip Jefferson
Philip Jefferson
Federal Reserve

Uncertainty clouds the policy path ahead but bringing down inflation is likely to be costly, said US Federal Reserve policy-makers Loretta Mester and Philip Jefferson on February 24, commenting on research into past episodes of disinflation.

“Uncertainty is the norm, not the exception,” said Mester, president of the Federal Reserve Bank of Cleveland. “I see the risks to the inflation forecast as tilted to the upside and the costs of continued high inflation as being significant.”

Mester and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account