Cleveland Fed President: Although progress has been made in reducing inflation, the Fed's mission is not yet complete

Cleveland Fed President Mester stated that although recent progress has been made in lowering inflation, the Fed's mission is not yet complete. She pointed out that the inflation rate is still above the 2% target, and geopolitical events may lead to a rebound in energy prices. Despite a decrease in housing service inflation, rising rents may keep housing inflation high. Policymakers cut interest rates for the first time last month and may take gradual rate-cutting measures in the future. The latest data shows that initial jobless claims were lower than expected, supporting market expectations for gradual rate cuts by the Fed