Several governors and Federal Reserve chairs say more interest rate hikes are needed to curb inflation. “We’re not done raising interest rates yet,” said Fed Governor Lisa Cook. “We need to aggressively raise rates to cap inflation,” said Minneapolis Federal Reserve Chairman Neel Kashkari.
Fed officials on raising interest rates further
Several governors and Federal Reserve chairs said this week that more interest rate hikes are needed to curb inflation. His comments followed a similar statement by Federal Reserve Chairman Jerome Powell, who said Tuesday additional interest rate hikes will be needed to cool inflation.
At an event hosted by the Joint Center for Economic and Policy Studies on Wednesday, Fed Governor Lisa Cook stated:
We are determined to bring inflation down to our target… So I think we are not done raising interest rates yet, and we will have to keep interest rates tight enough.
“Now we are moving in smaller steps,” Cook added. “This will give us time to assess the effects of our quick actions on the economy.”
After a series of 75 basis point rate hikes last year, the Federal Reserve raised its benchmark interest rate by 25 basis points last week to 4.5%-4.75%.
Citing the January jobs report showing nonfarm payroll growth of 517,000, Fed Governor Christopher Waller said Wednesday at the Arkansas State University Agribusiness Conference: “We are seeing the effort begin bear fruit, but we have a long way to go.” He emphasized:
It could be a long fight, with interest rates higher for longer than some currently expect. But I won’t hesitate to do whatever it takes to get my job done.
New York Fed President John Williams told a Wall Street Journal event on Wednesday that moving to a federal funds rate of between 5.00% and 5.25% “seems like a very reasonable view of what we will have to do this year to get the supply”. and the demand imbalances decrease”.
In addition, Minneapolis Federal Reserve Chairman Neel Kashkari said Tuesday on CNBC: “We have a job to do. We know that raising rates can curb inflation.” He added:
We need to aggressively raise rates to cap inflation, then let monetary policy work its way through the economy… I don’t see we’ve made enough progress to declare victory.
How long do you think the Fed will keep raising interest rates? Let us know in the comments section.
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