Fed's Mester Signals Support for Interest-Rate Increase Above 5%

Cleveland Fed President Loretta Mester said interest rates need to rise above 5% given stubborn inflation, but how much above 5% will depend on economic and financial developments. Mester says the Fed is closer to the end of the tightening journey than the beginning. She will wait until the next policy meeting in May to decide whether rates should be raised at that meeting or a later one. Mester will also take into account whether banks are tightening their lending conditions and what impact that has on the economy.