Fed’s Mester Says More Tightening Needed to Reach Inflation Goal

The Federal Reserve will need to continue raising interest rates somewhat to make sure inflation comes down to its 2% target, Cleveland Fed President Loretta Mester said.

“In order to ensure that inflation is on a sustainable and timely path back to 2%, my view is that the funds rate will need to move up somewhat further from its current level and then hold there for a while as we accumulate more information on how the economy is evolving,” Mester said Monday in remarks prepared for an event at the University of California, San Diego.