Fed's Mester: Reduction in balance sheet putting upward pressure on longer-term rates

Cleveland Fed President Loretta Mester recently crossed the wires saying that the reduction in the balance sheet was likely putting upward pressure on the long-term interest rates.

Key quotes (via Reuters)

• Fed is not far behind or ahead of curve and can gather information on economy before adjusting rate policy.
• Most likely scenario is economic growth will slow this year, job growth will slow, inflation will stay near 2%.