Headlines crossing the wires from Loretta Mester, president of the Federal Reserve Bank, Cleveland

via Bloomberg and Reuters:

  • Fed may have to hike faster if liftoff delayed too long
  • US economy has made substantial progress
  • Has cut her estimate of long run Fed Funds rate to 3.5% (from 3.75%)
  • Expects Fed to tighten policy gradually
  • Expects inflation to gradually return to the Fed's 2% goal
  • US is at, or nearly at, full employment

While comments from other Fed members have been leaning more dovish (eg, Brainard and Tarulloand even vice-chair Fischer over the weekend: "He is beginning to lay the groundwork for a potential big back-pedal from the Committee"), Mester staying the hawk course, and will be an FOMC voter in 2016 (not in 2015).