Fed's Mester: Being Prudent Sometimes Means Hiking Interest Rates

In a speech, Cleveland Fed President Loretta Mester said it would be prudent to raise interest rates now, as she explained why she dissented from last week's decision to keep rates steady. "In the face of evidence that the economy is on track to meet our goals over the medium run, sometimes being prudent means moving the policy rate up," she said. Mester, one of 3 voters who wanted a quarter-point hike, said previous risks including the volatility in financial markets at the start of the year, economic weakness abroad, and the aftermath of the U.K. vote to leave the European Union, have subsided, and the economic expansion has proved to be resilient.