Loretta Mester image

Loretta Mester

3 Votes

UPenn Wharton

  • Philadelphia, PA

About

  • President and Chief Executive Officer, Federal Reserve Bank of Cleveland (2014-2024)
  • Adjunct Full Professor of Finance, The Wharton School, University of Pennsylvania (2001-Present)
  • Member, FOMC Subcommittee on Communication (2014-2018 and 2023-2024)
  • Member, CNBC Global Financial Wellness Advisory Board (2025-Present)

Voting History

Finance

Private Credit Funds

Question A:

Some major private credit funds - including those offered by BlackRock, Cliffwater and Morgan Stanley - have maintained their redemption limits, not fully filling all investor requests.

The enforcement of restrictions on withdrawals from private credit funds predicts that the funds will substantially underperform indices of liquid high-yield corporate bonds over the next 18 months.

Vote Confidence Median Survey Vote Median Survey Confidence
Agree
5
Uncertain
6
Comment: It is a sign that firms do not want to meet liquidity needs by selling assets that at this point would earn less than values on their books.
Question B: Assets in the private credit funds that are restricting withdrawals are substantially overvalued relative to their true market value.
Vote Confidence Median Survey Vote Median Survey Confidence
Agree
8
Uncertain
6
Interest-bearing stablecoins, either via direct issuer payments or exchange-provided rewards, would measurably erode the deposit franchise of banks in developed-market economies.
Vote Confidence Median Survey Vote Median Survey Confidence
Uncertain
5
Uncertain
6
Comment: Will depend on competitive response from banks.
Finance

Housing Affordability

Question A: Having the government-sponsored housing agencies Fannie Mae and Freddie Mac buy $200 billion in mortgage-backed securities would reduce mortgage rates by more than 25 basis points.
Vote Confidence Median Survey Vote Median Survey Confidence
Disagree
8
Disagree
7
Comment: There was a short-term announcement effect. More significant effect has to address the limited supply of housing.
Question B: Having the government-sponsored housing agencies Fannie Mae and Freddie Mac buy $200 billion in mortgage-backed securities would measurably improve the affordability of home ownership.
Vote Confidence Median Survey Vote Median Survey Confidence
Disagree
8
Disagree
7
Comment: Program not large enough to have a longer-term effect.
Question C: Restrictions on large institutional investors buying single-family homes would measurably improve the affordability of home ownership.
Vote Confidence Median Survey Vote Median Survey Confidence
Disagree
5
Disagree
6
Comment: In certain locations, institutional investors represent a sizable source of demand; but overall, they do not.