Fed's Loretta Mester speaking on CNBC

  • Fed is trying to be transparent on rate policy
  • Is not boxed in by Dec lift off reference
  • Confident 2% inflation target can be achieved, despite oil and the dollar tempering inflation
  • Doesn't think Fed is behind the curve
  • Longer the delay, higher the chances of financial imbalances
  • There's a lot of reasons to think the path will be gradual

Yesterday Mester said the US economy could handle a 25bp rise in rates