Fed’s Mester – Don’t want to delay (rate hike) too long

In an interview with Bloomberg, Loretta J. Mester, President and CEO of the Federal Reserve Bank of Cleveland said that delaying rate hikes for too long would increase the risk of being behind market/falling behind the curve.

Key quotes

Gradual rate hikes over time desirable

Comfortable with rates being higher

We are full employment

Inflation is moving up

The devil is in the details when it comes to fiscal policy

Forecast for unemployment is to fall

GDP growth is bit above trend