Reuters reported that Cleveland Fed President Loretta Mester said as the Federal Reserve's higher interest rates slow the economy, a recession may result, though it's not part of her baseline forecast and is not what the central bank wants.
"I don't think it's a positive outcome, but it may happen," Mester said. "We may have a mild recession - I can't rule that out. I haven't penciled that in to my own projection, but when you have growth well below trend, it wouldn't take that much of a negative shock -- but again I don't think that's necessarily a positive thing, that's not what we are engineering to do."
More to come..
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