Cleveland Fed President and FOMC member Loretta Mester on Thursday said that the unfolding situation in Ukraine would be a consideration for the Fed when determining the appropriate pace at which to remove monetary policy accommodation, Reuters reported. Events in Ukraine have implications for the medium-run economic outlook in the US, she added, with geopolitical events adding some upside risks to the inflation forecast even as they put some downside risk to near-term growth forecasts. 

Accommodation will be removed at the pace necessary to bring inflation back under control while sustaining activity and healthy labour markets, Mester said. She added that she expects some improvement in inflation readings later in the year as demand moderates and capacity constraints begin to ease. Mester said she expects inflation to remain above 2.0% this year, with risks tilted to the upside.