Policy at the Federal Reserve is keeping pace with developments in the economy and the Fed is not falling behind the curve in planning its first interest rate increase, Cleveland Fed president Loretta Mester said on Friday.
“I am not thinking we are behind the curve,” Mester said in an interview on CNBC, noting that she voted in favor of the most recent Fed policy statement. “We are going to react to developments in the economy.”
Mester said she forecast three percent growth “for the next couple of years,” and that it would likely be appropriate to raise interest rates sometime next year.
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