Fed's Mester 'Comfortable' With June Rate Hike

(RTTNews) - The Federal Reserve remains on course to raise interest rates in June thanks to sustained improvement in the U.S. economy, Cleveland Federal Reserve President Loretta Mester said on Wednesday.

Mester said low energy prices and underlying positive fundamentals will help the U.S. economy grow by 3 percent in 2015.

Meanwhile, she expects the oil price collapse that has pushed inflation below the Fed's target rate will prove temporary.

"Inflation will gradually move back up to 2% by the end of next year as economic activity continues to strengthen, oil prices stabilize, and inflation expectations remain anchored," she said.

If incoming economic information supports my forecast, I would be comfortable with liftoff in the first half of this year," she added.