Mester advocates continuing 2017 rate path this year

The president of the Federal Reserve Bank of Cleveland, Loretta Mester, believes the tightening path implemented by the Federal Open Market Committee in 2017 should be continued over the next two years to prevent the economy from overheating.

US policymakers increased the federal funds rate three times to a range between 1.25% and 1.50% in 2017. The central bank has indicated three rate hikes are likely in 2018, with two additional increases in 2019.

“If the economy evolves as I anticipate, I