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Cleveland Fed president endorses more half-point rate hikes, bigger ones if inflation persists
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Cleveland Federal Reserve President Loretta Mester said Tuesday she supports consecutive, half-point interest rate hikes at the central bank's next two meetings – and would back an even bigger increase down the road if sky-high inflation doesn't cool off by the second half of the year.
"We don’t rule out 75 forever, right? The cadence we’re going now seems about right to me," Mester said Tuesday during an interview on Bloomberg Television. "We’re going to have to assess whether inflation is actually moving down, and then we’ll be able to get more information after we do a couple of those to see," she said, referring to 50 basis-point hikes.
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Mester, a voting member on the Federal Open Market Committee this year, said that she does not want to rule any moves out after inflation rose to a fresh 40-year high in March. If prices do not begin to subside by the latter half of the year, she said policymakers may "need to speed up."