U.S. Fed's Mester says gradual rate hikes still appropriate

The latest disappointing U.S. jobs number has not changed the overall economic picture, and gradual rate hikes remain appropriate, Cleveland Fed President Loretta Mester said in the Swedish capital on Saturday. The U.S. economy added just 38,000 jobs in May, well below the consensus estimate of 164,000 and the smallest gain since September 2010.