Fed’s Mester: Current economy supports no additional Fed cut, but China trade impact can’t be ignored

Cleveland Federal Reserve President Loretta Mester, a non-voter on interest-rate policy this year, remains undecided whether she will recommend a rate cut when the Fed meets in coming weeks, even though she was not in agreement with the cut the Fed panel put in place earlier this summer. Mester, in a CNBC appearance from the annual central bank conference in Jackson Hole, Wyo., said she’s still assessing data but should the economy remain at its current level of health, she’ll lean toward no follow-up cut. U.S. rates should be higher than those in Europe and China, she said. Still, the current trade fight remains a key risk, she said. Stock futures

SPX, -0.05%

were dropping as Mester conducted the interivew, after China announced a set of tariffs in reaction to U.S. tariff policy. The trade spat is hitting investor sentiment, Mester said, but the consumer so far remains strong. The next job-market report will be very important, she said.

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