REUTERS/David Stubbs
Loretta Mester, President and CEO of the Federal Reserve Bank of Cleveland.
From The Wall Street Journal's Jon Hilsenrath:
Ms. Mester is arguing more broadly for a rewrite of the Fed's script. She said the Fed's policy statements have gotten unwieldy, overloaded with code words that the public doesn't well understand.
"We should try to simplify our statements over time," she said. "We talk in code….We would probably do better to be a bit more plain-spoken."
In an interview with The Wall Street Journal, Mester also said she wants the Fed to drop the word "patient" from its policy statements, giving the Fed more flexibility to raise rates this year.
"I want June to be a viable option," Mester told the Journal, adding that in her estimation, a language change is needed for this to be the case.
According to Bloomberg's Matt Boesler, following the January jobs report Morgan Stanley's "# of Months to the First Rate Hike" index fell to 7 months, the lowest since May 2010. The Fed has not raised interest rates since 2006.
According to data from CME Group, the Market doesn't put a greater than 50% chance on the Fed raising rates until its September 2015 meeting.
And recently, we highlighted comments from Morgan Stanley's Ellen Zentner, who doesn't expect the Fed to raise rates until the first quarter of 2016.