Fed's Mester: There is a compelling case for Fed to stay on gradual hike path

The hawks are getting more hawkish

Mester spoke to Bloomberg in an interview.

• US consumers are holding up well
• Inflation expectations are reasonably well-anchored
• Tax plan unlikely to have a major impact on growth
• We will see some wage pickup
• Fiscal policy only one part of 2018 economic picture
• Hard to get to 3% GDP growth

Kaplan and Mester both downplayed the impact of the tax plan today.