Fed's Mester: Says she's likely to favor hike at next meeting if current situation holds

<ul><li>Likely to favor hike at the next meeting if the current economic situation holds</li><li>Long-term yield rise will affect mon pol outlook</li><li>Fed likely at or near peak for interest rate target</li><li>Higher long-term rates will moderate growth</li><li>Yields up on a number of factors, including changed outlook on growth</li><li>Doesn't see a rate cut happening any time soon</li><li>Expects to hit 2% inflation by end of 2025</li></ul><p>10-year yields are up 60 basis points from late August, that's doing a lot of tightening and will keep the Fed from needing to tighten more next year.</p>

This article was written by Adam Button at www.forexlive.com.