Mester is a hawk but is not voting this year

She adds:

  • Uncertainly surrounding Trump not yet feeding into economic forecasts. Sees growth around 2%
  • Risk around current economic and rate forecast appear balanced
  • Studying equity markets for signs of excess but says record prices likely due to earnings, low rates
  • Wage rises inevitable as hiring continues and economy tighens
  • expects long term bond yields to ultimately rise as Fed continues boosting short term rates and shrinks asset holdings
  • Not there yet on the need to delay rate hikes.

Mester is more of a hawk but she is not a voting member on the FOMC board in 2017.