Fed’s Mester Would Have Supported Larger Rate Increase This Month

A Federal Reserve official said there was a strong case for raising interest rates by half a percentage point at the central bank’s meeting earlier this month, given the strength of economic demand and persistently high inflation pressures.

Fed officials unanimously approved its increase benchmark federal-funds rate of one quarter pointor 25 basis points, to a range between 4.5% and 4.75%, at the conclusion of their most recent policy meeting on February 1.