Fed’s Mester says interest-rate policy is in a ‘good place’

Interest-rate policy is in a “good place” at present and can move in either direction based on how the economy evolves, Cleveland Fed President Loretta Mester said on Wednesday.

The economy could move in unexpected ways, Mester said, in a speech at Loyola University Chicago. If it does, “monetary policy will need to be nimble and respond appropriately to the evolving outlook and to the risks to achieving both parts of our dual mandate.  I believe the current level of the funds rate positions us well to do that,” she said….