Fed's Mester Expects Economy To 'regain Its Footing'

The U.S. economy will work through the latest market selloff and "regain its footing" said Cleveland Fed President Loretta Mester on Thursday. In a speech in New York, Mester said the drop in stock and oil prices do pose "some risk" to the economic outlook but said she thought it was premature to change her forecast. Last month, Mester projected U.S. growth would be at an above-trend pace in the 2.5% to 2.75% range. "My current view is that economic conditions will evolve in a way that will warrant rates moving up gradually over time to more normal levels," she said. Mester is a voting member of the Fed's policy committee this year.