Cleveland Federal Reserve President Loretta Mester said Friday she’s in favor of raising interest rates quickly to bring down inflation, but not so quickly as to disrupt the economic recovery.
That means a strong likelihood of backing a 50 basis point rate hike at the next Fed meeting and perhaps a few more after, but not going to 75 basis points, as St. Louis Fed President James Bullard suggested earlier this week. A basis point is 0.01 percentage points.
“My own view is we don’t need to go there at this point,” Mester said on CNBC’s “Closing Bell” when asked by host Sara Eisen about the 75-basis-point move. “I’d rather be more deliberative and more intentional about what we’re planning…