Fed's Mester: Fed should not overreact to coronavirus-related stock market drop
WASHINGTON, Feb 24 (Reuters) - Federal Reserve policymakers should not overreact to short-term financial market movements caused by worries over the extent of the coronavirus outbreak, Cleveland Fed President Loretta Mester said on Monday.
"I just caution that you don't want to overreact to volatility in the markets if you're a monetary policymaker," Mester told reporters following an appearance at the National Association for Business Economics conference in Washington.
"You certainly want to take into account what's happening in financial markets and you certainly want to assess what financial conditions going forward are going to be but I don't think it's right to take one day and extrapolate that out." (Reporting by Lindsay Dunsmuir; Editing by Andrea Ricci)
