Fed's Mester: There are upside risks to inflation, but tapering should start 2021

Federal Reserve Cleveland Loretta Mester repeats that the Fed should start tapering purchases this year and complete the purchases by the middle of next year.

Key comments

Inflation criteria for a rate hike have not been met yet.

There are upside risks to inflation and the Fed has to be very attuned to that.

She expects some of the high inflation readings seen this year to temper next year as supply chain challenges are resolved.