1:01 PM » Fed's Mester wants to rewrite 'considerable time' pledge
WASHINGTON (MarketWatch) - The Federal Reserve needs to re-write its forward guidance now that it is closer to ending its bond-buying program, said Loretta Mester, the president of the Cleveland Fed, on Thursday. The Fed statement now pledges to keep rates near zero for a "considerable period" after the end of its asset purchase plan, expected in October. Mester's comments put her in the camp of hawkish Fed president Charles Plosser, who dissented from the last Fed statement because he wanted to scrap the "considerable period" language. In her speech to the Economic Club of Pittsburgh, Mester said the economy is now "standing on firmer ground." She forecast economic growth at about a 3% pace over the next 18 months and said the unemployment rate should drop to 5.5% by the end of next year. Mester joined the Cleveland Fed is June. She is a voting member of the Fed policy committee this year.