Fed's Mester: Will likely need to hike rates one more time this year

Federal Reserve Bank of Cleveland President Loretta Mester speaks on her economic outlook on Monday, per Reuters.

Key quotes

"Monetary policy path depends on how economy performs."

"Fed will likely need to hike rates one more time this year."

"Economy on ‘good path’ amid ongoing rebalancing of supply and demand."

"Job market strong but slowing, coming into better balance."

"Inflation ‘too high’ but sees welcome signs of progress lowering price pressures."

"Fed will need to keep rates high to ensure return to 2% inflation."

"Economy has grown more strongly than expected."

"Risks to inflation tilted toward upside."

"Credit conditions have tightened in line with monetary policy."

"Sees some signs wage pressures are easing."
 

Market reaction

As of writing, the US Dollar Index was unchanged on the day at 107.03.