Fed's Mester says it is 'imperative' to get inflation down

[CLEVELAND] Federal Reserve Bank President Loretta Mester on Thursday (Apr 14) pushed back against the idea that by raising interest rates the Fed is prioritising its goal of achieving 2 per cent inflation over its aim to maximize employment.

"It's not really a tradeoff right now, it's really an imperative that we take the action, that we are committed at the FOMC to do that, to get inflation on a downward trajectory," Mester said during a panel discussion at the University of Akron in Ohio.

"If you really want to sustain a healthy economy ... a healthy labor market, you've got to get back to price stability... (Inflation) harms the workforce, it harms employment."

The FOMC, or Federal Open Market Committee, is the Fed's policy-setting body. REUTERS