Mester Says Fed May Raise Rates Within the Next Six Months

Broad U.S. economic strength may allow the Federal Reserve to start raising interest rates within the next six months and the data will determine the pace of policy tightening thereafter, a regional Fed chief said.

Federal Reserve Bank of Cleveland President Loretta Mester said in an interview with Fox Business Network today that she had a “pretty good” outlook for U.S. growth of around 3 percent in 2015, with inflation heading back up toward the Fed’s 2 percent target while unemployment continues to decline.