WASHINGTON, Nov 16 (Reuters) - Cleveland Fed President Loretta Mester said on Thursday she feels inflation is poised to pick up, clearing the way for the Fed to continue its gradual process of raising interest rates.
“I am not as troubled by where inflation is today. There is good reason to believe it is going to come back up,” Mester said at a monetary policy conference at the Cato Institute. Given the depth of the 2007 to 2009 economic shock, she said, an extended period of weak inflation “should not have been unexpected.”
The Fed is expected to raise interest rates at its December meeting.
Reporting by Howard Schneider Editing by Chizu Nomiyama