The Fed is not behind the curve, Federal Reserve Bank of Cleveland President Loretta Mester said Friday.
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"I don't believe the Fed is behind the curve yet," Mester said in an interview on Bloomberg radio. She noted there's been "good progress" toward the Fed's dual mandate, having "achieved maximum employment" as far as monetary policy can.
But as the economy improves and the goals near, "we need to move rates up," Mester said, noting she "supports the gradual path" although her "path is a bit steeper … [but] pretty much on track."
When asked about the possibility of returning to zero lower bound, Mester said, the idea is to keep the economy healthy to avoid a return to zero lower bound. But, she noted, "Soft landings are hard to come by."
