Zhitong Finance APP was informed that on Friday, Cleveland Fed President Mester said that the possibility of raising interest rates by 75 basis points in September was put on the agenda again.
Speaking at the ECB meeting, Mester said she expected the Fed to support a 50 basis point rate hike at its two meetings in mid-June and late July. At that point, she noted, the Fed could review the appropriate pace of further rate hikes, depending on the circumstances.
“If monthly readings on inflation provide compelling evidence that inflation is falling by the time of the September FOMC meeting, the pace of rate hikes could slow, but if inflation fails to do so,” Mester said. easing, then a faster pace of rate hikes may be necessary.”
As a result, the Fed is likely to raise rates by 75 basis points after its Sept. 20-21 meeting.
Earlier this month, Federal Reserve Chairman Jerome Powell said the central bank was not actively considering raising rates by 75 basis points. But in an interview with Market Radio on Thursday, Powell said he was not firmly ruling out such a big rate hike. Analysts, on the other hand, believe Powell is wrong to rule out such a big rate hike, as it raises questions about the Fed’s willingness to regain control of inflation.
Mester is a voting member of the Fed’s rate committee and is considered one of the more hawkish regional Fed chairs.
edit/isaac
This article is reprinted from: https://news.futunn.com/post/15542849?src=3&report_type=market&report_id=205617&futusource=news_headline_list
This site is for inclusion only, and the copyright belongs to the original author.