In an interview with the Wall Street Journal, Atlanta Fed president Raphael Bostic said “at this point, I’d toss a coin” to decide between a half-point versus a three-quarter-point rate increase. He will have longer-term expectations to manage about how high the Fed thinks rates may need to rise, how long they will need to stay there, and how the Fed might react if the economy weakens more than expected.īut there is also shorter-term focus on what the Fed will do when it meets in just under four weeks.
Fed Chair Jerome Powell addresses the conference on Friday. The interviews with George were broadcast ahead of the kickoff Thursday night of the Kansas City Fed’s annual research symposium at Jackson Hole, Wyo., held as a live event for the first time since 2019.įed Chair Jerome Powell addresses the conference on Friday in remarks expected to summarize where he feels the Fed stands in its fight to control the worst outbreak of inflation in 40 years. The last two increases were in three-quarter-point increments, and Fed officials must now decide whether to sustain that pace or reduce it. The Fed has raised rates at each of its meetings beginning in March, with the federal funds rate currently set in a range between 2.25% and 2.5%. Larry Summers urges Fed to admit unemployment will rise, end ‘confusion’
“Whether it’s 50 or 75, I can’t say right now,” Harker said, adding that in the context of a historical record where quarter-point rate hikes have been the norm, even a half-point hike is a “substantial” move. REUTERSĪs for next month’s decision, he said, he’ll need to see what the next inflation report shows. “I am not in the camp … of taking rates up and then way down.” Patrick Harker said he’ll need to see what the next inflation report shows. “I’d like to see us get to, say, above 3.4% - that was the last median in the SEP (Summary of Economic Projections) - and then maybe sit for a while,” Harker said. Philadelphia Fed president Patrick Harker had a similar message in comments to CNBC, though he appeared to see policy rates topping out a bit lower than George. I don’t think that’s out of the question … You won’t know that, I think, until you begin to watch the data signs.” Louis and Minneapolis banks voted July 14 for a 100 basis-point discount rate rise, according to minutes of discount-rate meetings released by the Fed on Tuesday. “I think we will have to hold - it could be over 4%.
In an interview with Bloomberg, she said the target federal funds rate may ultimately need to exceed 4% to get the desired impact, and may need to remain high for some time. However, she said, “our charge is pretty clear, to bring inflation back to our target” by raising interest rates high enough to fix what she called a “fundamental imbalance” between the demand for goods and services and the economy’s ability to produce or import them. Mortgage rates jump to 5.89%, highest since 2008 Spin city: White House claims Biden sets stage for recovery amid recession fearsįed’s Jerome Powell vows to keep hiking rate to avoid repeat of 1980s inflation plight Biden’s reality bites! Uglier downturn seen
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