Fed's Mester: "Pace of 2018 rate hikes should be similar to 2017"

Cleveland Federal Reserve Bank President Loretta Mester has crossed the wirses and has said that the pace of rate hikes in 2018 should be similar to 2017's.

Key statements:

• Says rate hike path gives inflation time to rise, while avoiding build-up of risks.
• Sees unemployment falling below 4 pct this year, inflation rising to 2 pct in next one to two years.
• US tax cuts will add 0.25 to 0.5 pctge point to GDP growth this year and next, possibly more.
• Mester says difficult to estimate long-run impact on growth from tax changes.
• Says further US interest rate hikes in 2018 and 2019 'appropriate'.
• Pace of rate hikes should be similar to 2017, when Federal Reserve raised rates three times.
• Says she expects GDP growth of 2.5 pct this year.