Federal Reserve's Mester predicts interest rates to exceed 5%.

Federal Reserve Bank of Cleveland President Loretta Mester said that the US central bank will likely raise interest rates further to keep inflation on a sustained downward path to 2% and keep inflation expectations anchored. She sees monetary policy moving "somewhat further into restrictive territory this year, with the fed funds rate moving above 5% and the real fed funds rate staying in positive territory for some time." Mester expressed confidence that banking sector woes should ultimately prove contained and expects growth and hiring to slow and inflation pressures to ease.