Fed's Mester: Fed Needs to Raise Interest Rates above 5%

The Fed's Mester said the Fed needs to raise interest rates above 5% for a period of time and it will wisely balance risks in order to minimise the pain of tightening monetary policy. The recent turmoil in the banking sector may cause credit conditions to tighten, but the current state of the US banking industry is stable and resilient. The interest rate hike will depend on the inflation.