The major indexes have stretched to all-time highs and are riding one of their best first halves in decades.Trading Nationread more
The brokerage says that the globe is "one step away" from recession as the world's two largest economies head to the G-20 summit.Marketsread more
As candidates from Elizabeth Warren and Bernie Sanders to John Delaney jockey for position in the 2020 Democratic primary, business issues will come up in the first debates.2020 Electionsread more
President Trump issues an executive order that would pressure insurers, doctors and other providers to disclose more information about health-care prices.Health and Scienceread more
Sen. Bernie Sanders will announce a plan on Monday to forgive the country's $1.6 trillion outstanding student loan tab, intensifying the higher education policy debate in the...Personal Financeread more
J.P. Morgan analyst Stephen Tusa is sticking to his guns when it comes to General ElectricInvestingread more
The Supreme Court on Monday announced that it will not hear a challenge to President Donald Trump's tariffs on steel imports into the United States.Politicsread more
A bipartisan team of senators introduce the Dashboard Act to make social media companies disclose the value of user data.Technologyread more
Trump says he would impose additional sanctions against Iran in a bid to prevent the country obtaining nuclear weapons.World Politicsread more
The prospect of another military conflict in the Middle East prompted international benchmark Brent crude to climb around 5% last week.Energyread more
Here are the biggest calls on Wall Street on MondayInvestingread more
"I want to reduce accommodation," Mester said in an CNBC interview from the central bank's symposium at Jackson Hole, Wyoming.
Without referring to a particular Fed meeting, she said: "I don't think we can wait until inflation gets back up to 2 percent."
"We've learned over time we need to be pre-emptive, and that means we have to be forward looking," said Mester, an alternate member of the Federal Reserve Open Market Committee.
The Fed's July meeting minutes showed policymakers were divided over whether to be cautious over recent weakness in inflation or to move back to a more normal state of monetary policy.
Mester said Friday she was "not overly concerned" with where stock prices "are right now" due to "pretty good" corporate earnings and low interest rates, but keeping rates low is "a risk."
"We had to put in a lot of accommodation to address the financial crisis and Great Recession," she said. "Now that the economy is getting back to normal, getting monetary policy back to normal I think is the appropriate thing to do."
Stocks have surged to record highs as part of a bull market that began in 2009, when the Fed began an unprecedented amount of easy monetary policy in the wake of the financial crisis.
Mester added that uncertainty about federal stimulus has put businesses into a "wait-and-see" mode but her slightly above-trend growth forecasts are based on "momentum in the underlying economy" without incorporating much change in fiscal policy.
Despite political chaos in the Trump administration in the last few weeks, chief economic advisor Gary Cohn said in an interview with the Financial Times published Friday that the president will begin a major push for highly anticipated tax reform next week.
The Fed raised short-term interest rates twice this year, and in June, the median of committee members expected another hike by the end of the year. Markets assign a roughly 40 percent chance of a quarter point rate hike by the end of December, according to CME's FedWatch tool.
The Fed is also expected to announce in September when it will begin reducing its $4.5 trillion balance sheet.
Fed Chair Janet Yellen is scheduled to speak later Friday morning at Jackson Hole, followed by European Central Bank President Mario Draghi in the afternoon.
U.S. stocks traded slightly higher. Treasury yields held steady after data showed nondefense capital goods orders excluding aircraft rose 0.4 percent in July.