Mester (Headlines via Reuters):
- I strongly supported the Fed's actions last week
- raising the fed funds rate to about 2.5% will be appropriate, with further rate hikes next year
- front-loading rate hikes is appealing; can slow pace or speed up in second half of 2022 depending on inflation data
- inflation is the u.s. economy's no. 1 challenge
- sees rising risks too-high inflation will become imbedded in the economy
- upside risks to inflation from Ukraine conflict are greater than downside risks to u.s. growth
- Fed needs to take action to reduce excess demand
- uncertainty about medium-run outlook has increased
- base case is that economy will grow at above-trend pace, sustain healthy job gains
- current wage increases likely inconsistent with price stability
- inflation will move down but won't return to 2% this year
more to come