Fed's Mester: Fed will need to go above 5% and stay there for awhile

Mester: How far Fed goes above 5% depends on the data

Jan CPI report underscores there is still more to do on cooling inflation
Expects to make good process on lowering inflation
Says she saw compelling case for 50 bps at the last FOMC meeting
Fed has more work to do to control inflation
Inflation levels remain too high
Bigger risk is to undershoot in effort to control inflation

This is hawkish and the market is taking it that way but Mester is usually hawkish so I don't see these comments as a surprise. However the market is differing at the moment. There is some contrast to her January 18 comments when she said "we're beginning to see the kind of actions we need to see" and that rates should rise 'a little bit' above 5-5.25%. This time she didn't specify how much higher the Fed needs to go, leaving it open ended, however she speaks again at 6 pm ET and could clarify.