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Mester said she sees benchmark interest rates rising above 4% by early next year.

She sees benchmark rates rising above 4% in the coming months. That’s well above the current target range of 2.25%-2.5% for the federal funds rate, which sets what banks charge each other for overnight borrowing but is tied to many consumer debt instruments.

“My current view is that it will be necessary to move the fed funds rate up to somewhat above 4 percent by early next year and hold it there,” “I do not anticipate the Fed cutting the fed funds rate target next year.”

Her expectation with higher interest rates from here:

• Slow economic growth, running “well below 2%”

• Unemployment rate rises

• Financial markets remain volatile

• Inflation to fall to a range of 5%-6% from 9.1%

Current interest or Fed fund rate at 2.5%, if 4% by end of the year, with the remaining 3 FOMC meetings, it should be a combination between 0.25%, 0.5% and 0.75%。

Though global inflationary pressure seems no sign of easing, there are some silver linings to note.

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