Fed’s Mester Says Rates Need to Move ‘A Little Bit Higher’

Federal Reserve Bank of Cleveland President Loretta Mester said Fed officials will need to raise interest rates “a little bit higher” and then hold them there for some time to bring inflation back toward their goal.

“We certainly are focused on inflation and making sure that inflation gets back down to 2% over time,” Mester said Wednesday during an interview with Bloomberg TV’s Michael McKee, adding that it’s too soon to say what officials will do at the Fed’s next policy meeting on May 2-3.