Fed's Mester: 2% inflation may not be reached until 2026

In an interview with Bloomberg Television, Cleveland Fed President Loretta Mester, a member of the 2024 FOMC, said that lower inflation in May was good news, but that the central bank would need to "see this continue for a while" before cutting rates. So there's still a lot of work to be done to gain confidence in the fight against inflation, with median economic expectations close to its view of the economy, and hopefully a few more months of similar inflation data, and it may take until 2026 to reach a 2% inflation rate.