Fed's Mester: rate cut likely to start in June

Cleveland Fed President Mester said Tuesday that the June policy meeting could be when easing kicks in if the data support it. "If the economy develops as expected, inflation continues to move back toward 2%, and the labor market and economic growth remain solid, then I think it would be appropriate to begin lowering the federal funds rate later this year," Mester said. She also doesn't expect to have enough information to make a decision on lowering rates until the next meeting (May). "But things could change by the time we meet on June 11-12," she said after her speech. "We have to rely on the data, so I don't want to rule that out." Mester, who will retire in June, is currently an FOMC vote.