Fed’s Mester: We have to change policy path if economic outlook changes

Additional headlines hit the wires from the Cleveland Fed President Loretta J. Mester, extending her talks on the labour market and fiscal policies.

Key Points:

Uncertainty in global economy & European banks

Uncertainty doesn't mean we don't do anything

May be more changes to forecasts in current environment

Do not need fiscal spending to spur aggregate demand

We have to change policy path if economic outlook changes

Some problem areas in labour market