Fed’s Mester Sees Need for Some Half-Point Rate Hikes This Year

Federal Reserve Bank of Cleveland President Loretta Mester says she supports front-loading interest-rate increases this year, likely including some half percentage-point hikes, to curb the hottest inflation in four decades.
“I think we’re going to need to do some 50 basis-point moves,” Mester said on a call with reporters Wednesday.

“I don’t want to presuppose every meeting from here to July, but I do think we need to be more aggressive earlier rather than later.” Mester, who votes on monetary policy this year, repeated that she favors raising rates to 2.5% by the end of the year.