new york april 20 reuters  cleveland federal reserve president loretta mester said on thursday the us central bank still has more interest rate increases ahead of it while noting the aggressive move to boost the cost of borrowing over the last year to quash high inflation is getting near its end demand is still outpacing supply in both product and labor markets and inflation remains too high mester said in prepared remarks for a speech to a group in akron ohio in order to put inflation on a sustained downward trajectory to 2 i anticipate that monetary policy will need to move somewhat further into restrictive territory this year with the fed funds rate moving above 5 and the real fed funds rate staying in positive territory for some time mester said referring to the central banks benchmark overnight interest rate but she also noted that supply imbalances in the economy are on the mend and with the cumulative impact of fed rate rises weighing on the economy we are much closer to the end of the tightening journey than the beginning mester added what happens next with rates will depend on the economy mester who does not have a vote on the ratesetting federal open market committee this year spoke less than two weeks before the may 23 policy meeting the fed is widely expected to hike rates a final time at that meeting lifting its policy rate by a quarter of a percentage point to the 500525 range the cleveland fed chief said banking problems that kicked off last month could help add to a tightening in financial conditions that could affect the choices central bankers will make noting a need to be prudent with policy mester said this possible change in financial conditions would work in the same direction as tighter monetary policy which the fed will need to take stock of to help us calibrate the appropriate path of monetary policy going forward mester said she expects the unemployment rate which is currently 35 to rise to between 45 and 475 she sees inflation which was running at a 5 clip on a yearoveryear basis in february based on the feds preferred measurement easing to 375 this year and hitting the central banks 2 target in 2025