Fed's Mester: Rate increases further out may need to be brought forward, depending on economy

Federal Reserve Bank of Cleveland President Loretta Mester said in an interview with the WSJ that, depending on what happens with the economy, some of the rate increase further out may need to be moved forward. 

Additional Remarks:

"There are many things pushing up inflation now, including supply chain issues and wages."

"We've moved from pandemic driven inflation to something broader."

"If we can get beyond the pandemic we'll see inflation measures come back down."

"That is incumbent on the fed doing what it needs to do to move off extraordinary accommodation."

"Depending on what happens with the economy some of the rate increases further out may need to be moved forward."

"The case is very compelling that we remove accommodation."

"The Fed is also considering what it can do to balance sheet to bring the level of assets down."

"If things look like they do today in march she would support lifting rates from zero at that point."

"Because of demographics, labor force participation trend is downward and we are back to that trend."

"The pace of interest rate increases will depend on how the economy plays out."

"The Fed will have to take policy actions to make sure inflation expectations remain consistent with its 2% goal."

"The Fed had to put in a lot of accommodation early in the pandemic but now the economy is basically back to full employment and above its inflation target."