Fed’s Mester says ‘markets can handle’ front-loading of rate hikes and balance sheet reduction at same time

Cleveland Federal Reserve President Loretta Mester on Wednesday said the Fed could continue “front-loading” interest rate hikes in the first half of this year and start to reduce the central bank’s balance sheet at the same time without causing financial market disruption.  “We have to recognize that inflation is very elevated. It is well above our goal.