Delayed rate hike 'risk management' says Fed's Mester: Nikkei
(Reuters) - The Federal Reserve delayed an interest rate hike this month as a "risk management" measure in the face of global growth concerns and financial market volatility, Cleveland Fed President Loretta Mester was quoted on Tuesday as saying.
Mester, interviewed by Nikkei, repeated that she believes the U.S. economy is strong enough for an initial rate hike.
"The decision not to raise rates in September was really a decision about risk management," she was quoted as saying, citing risks to U.S. economic forecasts from a "reassessment of global growth" and renewed questions about China's economy and those of emerging markets.
"And there is volatility in financial markets and the slight tightening in financial conditions," said Mester, who has been advocating a policy tightening through the year, and who regains a vote on policy next year.
(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)
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