NEW YORK, (Reuters) – The Federal Reserve could meet its conditions to raise interest rates by 2022. Cleveland Fed Bank President Loretta Meder stated on Friday that the Federal Reserve may have met those conditions. She also said she believes inflation will return to its target for next year.

Mester reiterated her last week outlook, saying that “I believe we’ll witness progress in labor market” and that inflation will fall.

Mester stated that she believes inflation will begin to fall once the supply side and excess demand factors are lessened. She forecasts that inflation will rise above 2% by 2022 and 2023.

Projections the Fed released after its September meeting https://www.reuters.com/business/finance/fed-likely-open-bond-buying-taper-door-hedge-outlook-2021-09-22 showed that policymakers are evenly split on when they expect rates to increase, with nine of the 18 Fed officials projecting they may need to start raising rates in 2022.

Mester indicated that inflation expectations will remain well-anchored. But, Mester noted that officials could need to take action if inflation continues to climb and inflation expectations for the medium to long term stay elevated.

Mester in 2022 will be able to vote on the Fed’s policy-setting board.