Federal Reserve Bank of Cleveland President Loretta Mester said Wednesday that the central bank might no longer be able to ignore sources of inflation that monetary policy can’t easily address given how those types of rising prices can affect consumers’ moods.
Ms. Mester, who is a voting member of the rate-setting Federal Open Market Committee this year, assessed in her prepared text what inflation expectations mean for central-bank policy. She didn’t address the near-term monetary-policy outlook.
