Cleveland Fed's Mester advocates for rates above 5% to combat inflation.

Cleveland Fed President Loretta Mester sees interest rates moving above 5% and rates adjusted for inflation staying in positive territory for "some time." Mester called inflation "too high and too stubborn." The disaggregated data show that the inflation stubbornness is due mainly to the prices of services. The Fed's preferred measure of inflation climbed 4.6% in February from a year earlier. Mester acknowledged the challenges facing the banking system following the collapse of three banks in March but said, "The U.S. banking system is sound and resilient."