Fed’s Mester Says Situation in Ukraine Will Be Considered for Monetary Policy

Cleveland Federal Reserve President Loretta Mester gives her keynote address at the 2014 Financial Stability Conference in Washington, on Dec. 5, 2014. Gary Cameron/Reuters

The conflict unfolding in Ukraine could have an effect on the U.S. economy in the medium term and should be factored in as Federal Reserve policymakers remove accommodation, Cleveland Fed President Loretta Mester said on Thursday.

Such geopolitical events can worsen inflation and be damaging to economic growth in the near-term, said Mester, who has a vote this year for monetary policy decisions.