Cleveland Fed President Loretta Mester discussed inflation, the economy and Fed interest rate increases in an interview with The Wall Street Journal on Friday. Here is a transcript, lightly edited for clarity.
NICK TIMIRAOS: When you talk about data dependence, what does that mean in the context of both determining the ultimate destination for how high you think rates have to rise? And then also the tactical considerations that go into getting from here—which right now would be 2.4% on the federal-funds rate—to wherever you currently think that ultimate destination is?