The economy is strong enough for gradual rate hikes to continue, despite the fact there may be a few more weak inflation reports coming, Federal Reserve Bank of Cleveland President Loretta Mester said Friday, according to published reports.

The Fed’s actions “are meant to keep the economy healthy, not to slow down the expansion,” she said, noting underlying economic fundamentals remain “pretty good” and demand is still “solid.”

Mester told reporters she supports beginning balance sheet normalization this year, according to reports, and could support a rate hike and balance sheet cut announcement at the same meeting.

Federal Reserve Bank of Cleveland President and CEO Loretta J. Mester.
Federal Reserve Bank of Cleveland President and CEO Loretta J. Mester. Bloomberg News

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