"The longer we let inflation remain above 2%, we're building in a higher and higher price level," she said, and that hurts American households.
"I'm going to have to reassess that because, again, it's going to be, how quickly do you think inflation is moving down?"
"I do not want to be in a position of prematurely loosening policy," Mester said.
Fed projections submitted in June show a median forecast for 2.1% inflation by the end of 2025; Mester said hers was for 2% inflation.
The Fed's next and possibly last rate hike "doesn't necessarily have to be September, but I think this year," she said.
Persons:
JACKSON, Cleveland Federal Reserve Bank Loretta Mester, Mester, Ann Saphir, Marguerita Choy
Organizations:
Cleveland Federal Reserve Bank, Reuters, Thomson
Locations:
, WYOMING, Jackson Hole , Wyoming