Mester was speaking before inflation data was published which showed price pressures accelerating once again, causing investors to bet the Fed will raise interest rates at least three more times. (Reporting by Lindsay Dunsmuir; Editing by Jane Merriman and Andrea Ricci)
(Adds inflation data)
Feb 24 (Reuters) - Cleveland Federal Reserve President
Loretta Mester said on Friday that she was keeping to her
previous forecast made at the end of last year for the U.S.
central bank's interest rate peak as economic data since then
has not caused her to change her mind.
"I had my funds rate a little bit above the median in that
projection, and I haven't really seen much change in my outlook
for the economy since that time," Mester said in an interview
with broadcaster CNBC.
"So I see that we're going to have to bring interest rates
above 5%...I do think we need to be somewhat about 5% and hold
there for a time in order to get inflation on that sustainable
downward path."
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