Fed's Mester: Gradual pace of interest rate increases still appropriate

After delivering her prepared remarks at a community banking conference in St. Louis, Cleveland Federal Reserve President Loretta Mester responded to questions.

Key quotes (via Reuters)

• Does not see high risk that u.S. Inflation will pick up 'precipitously.'
• Reaching a phase in policy where Fed is 'very dependent' on data about the outlook.
• Gradual pace of interest rate increases still appropriate.
• One-day move in U.S. Bonds not concerning.
• U.S. divergence from other economies could feed back through dollar and other markets and would have to be factored into policy.