Cleveland Fed President Mester said on Monday that she believes the Fed's monetary policy is restrictive and that inflation will fall back towards the Fed's 2% target, but not quickly. Mester previously believed that the Fed could cut interest rates three times this year, but "based on the economic developments I currently see, I think this is no longer appropriate," she said. "Given the stagnation of first-quarter inflation progress and the rising inflation risk, frankly, the actual situation is stronger than I expected."