Fed's Mester: US economy can support a rate increase

FXStreet (Bali) - Loretta Mester, president of the Federal Reserve Bank of Cleveland, in an interview with The Wall Street Journal on the sidelines of the Kansas City Fed’s annual economic symposium, says that the U.S. economy can support a rate increase.

“I want to take the time I have between now and the September meeting to evaluate all the economic information that’s come in, including recent volatility in markets and the reasons behind that,” Ms. Mester said, cited by the WSJ. “But it hasn’t so far changed my basic outlook that the U.S. economy is solid and it could support an increase in interest rates.”

“There is probably more downside risk to my forecast now given the volatility, but my baseline forecast probably hasn’t moved enough to change my view on policy,” Ms. Mester added.