President of the Federal Reserve Bank of Cleveland, Loretta Mester, said on Friday that she would support a 50 basis points interest rate hike at the upcoming FOMC meeting in May, adding similar increases should follow throughout the year.
In an interview with CNBC, Mester argued there's no need for the Fed to hike its rates by 75 basis points next month and that it will take multiple years for inflation to return to the targeted 2%. Mester also commented on the state of inflation in the United States, saying she'd like to see the rates landing at 2.5% by the end of 2022.
"We are in a recalibration phase for monetary policy," she explained, forecasting the US economic growth would slow down to just above 2% at the end of the year.
