Federal Reserve Bank of Cleveland Loretta Mester said Tuesday she needs to see a further deterioration in data before considering lowering interest rates, warning that "cutting rates at this juncture could reinforce negative sentiment about a deterioration in the outlook even if this is not the baseline view." Her baseline outlook remains positive, but "a few weak job reports, further declines in manufacturing activity, indicators pointing to weaker business investment and consumption, and declines in readings of longer-term inflation expectation" would convince her that the base case is shifting to a weak growth ... (full story)