Fed's Mester: Supports rate increase in March

Loretta J. Mester, president and CEO of the Federal Reserve Bank of Cleveland, is crossing the wires and has stated that there's a strong case to start reducing accommodation and she supports rate increase in March.

Key comments

Says future rate increases will be guided by the economy.

Says if inflation is not coming down by the middle of the year then the Fed will need to remove accommodation at a faster pace.

Says her view is the fed can move considerably faster to shrink balance sheet than it has in the past

Says fed will be careful with balance sheet plan to not disrupt financial markets.

Says having inflation be under control is going to help the fed sustain the expansion.

Says she doesn't see a compelling case to start with a 50 bp rate increase.

Says that is something the committee is going to have to talk about and decide.

Says each meeting is going to be in play.

More to come...