cleveland federal reserve president loretta mester said wednesday that interest rates have to keep moving higher even with recent inflation readings softening in an interview with the associated press the policymaker said the fed likely will have to take its benchmark interest rate above 5 in order to get inflation moving consistently down to the central banks 2 goal she noted that markets and the economy absorbed the halfpoint december rate hike without a problem i just think we need to keep going and well discuss at the jan 31feb 1 meeting how much to do at any one particular meeting mester said but my projections and my view of the economy is that we need to do more we need to get above 5 and then hold it there for some time until we get inflation expectations very well anchored at 2  and inflation on that downward path the fed funds rate is currently targeted in a range between 42545