Fed’s Mester says the FOMC should act more quickly than in the previous tightening episode

• Fed should move more quickly than in the prior tightening cycle
• the pace of tightening should be drive by data and also forward-looking
• supports a March rate hike
• anticipates additional rate hikes in the months following
• sees inflation above 2% in 2022-23 and further upside risk
• FOMC can quicken H2 tightening pace if
   
   inflation 

  Read this Term does not ease back

• Fed should stop providing explicit forward guidance on policy

Mester is speaking on her economic outlook and monetary policy before a virtual event of the Volatility and Risk Institute and the Center for the Global Economy and Business, NYU Stern School of Business