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Feds’s Mester: Strong economic growth justifies further gradual increase in interest rates
The president of the Federal Reserve Bank of Cleveland, Loretta Mester, in an interview with CNBC on the sidelines of an annual press conference hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, said that a strong US economic growth justifies further rate hikes.
"Given the economic growth remains above the trend, inflation at 2% and very low unemployment, it is clear that the Fed has good reasons for further tightening of monetary policy," Mester said.
Mester also said that, in her opinion, US GDP growth will reach almost 3% in 2018, followed by a slowdown in 2019 and 2020. In her opinion, a gradual rate increase is the best way.
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