Fed's Mester: Fed will need to go above 5% and stay there for awhile

• Jan CPI report underscores there is still more to do on cooling inflation
• Expects to make good process on lowering inflation
• Says she saw compelling case for 50 bps at the last FOMC meeting
• Fed has more work to do to control inflation
• Inflation levels remain too high
• Bigger risk is to undershoot in effort to control inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term

This is hawkish and the market is taking it that way but Mester is usually hawkish so I don't see these comments as a surprise. However the market is differing at the moment. There is some contrast to her January 18 comments when she said "we're beginning to see the kind of actions we need to see" and that rates should rise 'a little bit' above 5-5.25%. This time she didn't specify how much higher the Fed The Fed "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of Read this Term needs to go, leaving it open ended, however she speaks again at 6 pm ET and could clarify.