February 13, 2018 / 2:46 PM / 7 months ago

More upside risk to economic outlook given budget, tax plans: Cleveland Fed's Mester

DAYTON, Ohio (Reuters) - Tax cuts and rising deficits have increased the “upside risks” to the economy, Cleveland Fed president Loretta Mester said on Tuesday, and policymakers will need to watch the impact those polices have on growth, inflation and other aspects of economic performance.

“There is more salient upside risk to the forecast than we have seen in quite a while,” Mester said. “We will have to see a little bit more detail on exactly how that is going to play out,” as companies and households decide how to use the extra cash from tax cuts and the impact of higher federal deficits becomes clear.

Reporting by Howard Schneider; Editing by Bernadette Baum

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