More from Fed's Mester: The actions the Federal Reserve took seem to have stabilised banks

Loretta Mester, president and CEO of Federal Reserve Bank Cleveland branch.

Earlier:

• Fed's Mester: Fed will need to raise rates above 5% and keep them there for a while

Q&A with mester now:

• The Federal Reserve took rapid action to deal with stress in the bank sector
• The actions the Federal Reserve took seem to have stabilised banks

• Was very comfortable with the Fed's recent 25 basis point rate rise

• Economy still has an issue with too-high inflation

• Doesn't share the market outlook for cutting rates this year