More Mester: Seeing some slowing in the economy, but it is rebalancing

More from Cleveland Fed Pres. Mester in question and answer:

• Is seeing some slowing in the economy, but it’s rebalancing.
• Disinflation can happen despite economic strength
• Does not think the neutral rate will be as low as it was
• Expects slower employment growth, slight uptick in the unemployment rate.
• Healthy labor markets should remain in place.
• Average family still struggling with inflation, explains sour consumer mood
• Fed doing a lot of work to make sure banks ready for discount window.
• Banks commercial real estate risks are manageable

US stocks are lower but off their lowest levels as well:

• S&P index on -51.17 points or -0.98% at 5192.39. The 100 hour moving average is at 5198.76.
• Dow industrial average average is down -463 points or -1.17% at 39103.40
• NASDAQ index is down -214 points at 16182

US yields are mixed and off their highest levels:

• 2-year yield 4.695%, -2.3 basis points
• 5-year yield 4.346%, +0.9 basis points
• 10-year yield 4.359%, +3.0 basis points
• 30-year yield 4.505%, +3.8 basis points

This article was written by Greg Michalowski at www.forexlive.com.