Fed's Mester: Inflation likely to hit two percent target by end of 2018

Speaking with journalists at a conference in Washington, Cleveland Fed President Loretta Mester argued that the inflation was likely to hit 2% target by the end of 2018.

Key quotes (via Reuters)

Neutral Fed funds rate likely to move up in short run but remain somewhat lower than long run historical average.

Fed needs to wait and see what emerges on Capitol Hill before assessing impact of tax proposals on economy.

Aspects of Dodd-Frank could be simplified but higher capital levels and stress testing are "basic" concepts that made financial system safer.

Don't think easy monetary policy has yet produced "excessive risk taking."

Growing economy, strong employment, gives Fed time to reevaluate inflation framework, other basic issues.