Cleveland Federal Reserve branch president Loretta Mester spoke on Sunday US time in an interview on CBS' "Face the Nation."
Fed rate hikes will make home, auto and other loans more expensive, thus:
- "will help reduce excess demand, which is outpacing constrained supply, and bring price pressures down"
- "I think it will take some time. ... Inflation will remain above 2% this year and even next year. But the trajectory will be moving down."
- "I think we can reduce excess demand relative to supply without pushing the economy into recession"
- "It is very important that we get inflation under control. That is the biggest challenge right now."
