Interest rate hikes will be needed - FOMC's Mester

Cleveland Fed Loretta Mester (2018 voter, hawkish) said on Thursday that further interest rate hikes will be needed.

She sees the economy expanding somewhat above 2% in 2018, while a sustained return of inflation to the 2% target should be seen over the next year or so.

Mester has also advocated for the Fed to start shrinking its balance sheet this year, adding that sustaining expansion requires more rate hikes.