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More Mester: Seeing some slowing in the economy, but it is rebalancingMore 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 strengthDoes not think the neutral rate will be as low as it wasExpects 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 moodFed 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 39103.40NASDAQ index is down -214 points at 16182

US yields are mixed and off their highest levels:

2-year yield 4.695%, -2.3 basis points5-year yield 4.346%, +0.9 basis points10-year yield 4.359%, +3.0 basis points30-year yield 4.505%, +3.8 basis points

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

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