Fed’s Mester says supports gradual rise in US. interest rates

 Loretta Mester is President of the Federal Reserve Bank of Cleveland and is toward the more hawkish end of the FOMC spectrum

• Says she doesn’t expect inflation to pick up sharply
• Inflation will reach Fed’s symmetric goal of 2 percent on sustainable basis over next one to two years
•  US economy is slightly beyond level of full employment
• Says uncertainty over US trade policy could cause firms to alter spending plans in the near term
• Says impact of US tax cuts and government spending on economy still uncertain
• Says her estimate of the longer-run nominal fed funds rate is 3 percent
• Says now is the time for fed to assess whether it needs to make changes to its monetary policy framework

(ps. headlines via Reuters)

Unsurprising remarks from Mester. Covering the hot topics of inflation, employment, tax cuts, fiscal stimulus. Not too many specific clues on timings of policy moves though. There is a Q&A still to come. Stay tuned.