Fed's Mester (FOMC voter, hawk): The task for the Fed is to remove accommodation at a pace that will keep the economy going
- Situation in Ukraine adds uncertainty to economic outlook
- Critical Fed uses policy to get inflation under control
- Potential is that large rise in energy price and supply chain issues continue for longer, increases chance of high inflation getting embedded in the US
- Starting with 25bp increase followed by additional hikes in coming months puts us in a good position
- If inflation does not ease as expected could hike faster
- Could very well be that rates need to move above long-run neutral in order to tame inflation