Loretta J. Mester, President of the Federal Reserve Bank of Cleveland, stated on Friday, following the NFP (Nonfarm Payrolls) report, that the job market remains strong despite signs of rebalancing. She downplayed the increase in the Unemployment Rate to 3.8%, stating that this level "is still low."

Speaking at an event in Germany, Mester mentioned that the main debate at the Fed is how restrictive policy needs to be and for how long. She explained that the Fed must balance risks when determining its policy rate.

Regarding inflation, Mester noted that it remains elevated, but she acknowledged that progress has been made.