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NEW YORK (Reuters) - The U.S. Federal Reserve will likely raise interest rates next year since inflation, while a bit low now, remains stable and should rise to target by the end of 2016, a top Fed official said on Thursday.
Loretta Mester, head of the Cleveland Fed, told reporters the central bank needs to be "forward looking" in deciding when to tighten policy based on inflation. She added that market volatility is to be expected as a rate-rise approaches.
Reporting by Jonathan Spicer; Editing by Lisa Shumaker