Fed's Mester sees rates above 4%, says Powell speech 'strong' – BBG TV

Cleveland Federal Reserve Bank President Loretta Mester poses during an interview on the sidelines of the American Economic Association’s annual meeting in San Diego, California, U.S., January 3, 2020. REUTERS/ Ann Saphir/File Photo

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Aug 26 (Reuters) – Cleveland Federal Reserve President Loretta Mester on Friday said she thinks the U.S. central bank needs to lift interest rates above 4% and said she believed Chair Jerome Powell delivered a “strong message” about the Fed’s determination to quash inflation.

“I think we’re going to have to move them up … above 4% and probably need to hold them there next year,” Mester said in an interview on Bloomberg TV from Jackson, Wyoming, following Powell’s speech there.

On Powell’s speech, she said: “I think that was a very strong message, and I am certainly aligned with that.”

“I thought the message was strong and right.”

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Reporting By Dan Burns; Editing by Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.

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