US Federal Reserve (Fed) officials are considering a scenario of stopping interest rate hikes.
 |
| Headquarters of the US Federal Reserve (FED) in Washington DC |
Philadelphia Fed President Patrick Harker said the Fed could hold off on raising interest rates to prevent unexpected problems for the economy, but rates will need to stay at their current high levels for a while. Speaking at an event hosted by the Philadelphia Business Journal on August 8, Patrick Harker said the Fed should be patient, keep rates steady and let the monetary policy it has implemented do its job.
Meanwhile, Richmond Fed President Thomas Barkin said it was too early to say whether the Fed would raise interest rates at its September meeting. Speaking at a Virginia Chamber of Commerce event, Barkin said he was leaning toward waiting until the September meeting to decide. Before the meeting, the Fed will receive two reports on the labor situation and two reports on the inflation situation, one of which will be released on August 10. Barkin said that after the reports are released, the Fed will have a basis to assess the US economic situation. He also said that it is possible that the Fed will start to lower interest rates at some point in 2024.
At its July 2023 meeting, the Fed raised interest rates to a 22-year high of 5.25% to 5.5%. Experts are expecting the Fed to end its rate hike campaign. However, not all Fed officials agree that the Fed may end its rate hikes soon. Fed Governor Michelle Bowman has previously said that the Fed needs to continue raising interest rates if necessary to fully restore price stability.
The Fed's next meeting to discuss interest rates is scheduled for September 19-20. The Fed has previously left open the possibility of further rate hikes to counter rising inflation. Fed Governor Michelle Bowman said further rate hikes may be needed to cool inflation, shortly after the Fed raised rates to their highest level since 2001. Fed Governor Michelle Bowman said she supported the decision by the Federal Open Market Committee (FOMC), the Fed's policymaking body, to raise interest rates in July 2023 due to strong economic data and rising inflation, and said additional rate hikes may be needed to bring inflation down to the FOMC's 2% target.
Ms. Bowman also said that monetary policy is not on a predetermined path, and that policymakers will base their decisions on the latest economic data. The Fed has three more meetings in 2023, with the next meeting in September. She said that banks will also continue to increase lending to households and businesses, although at a slower pace than when interest rates were lower.
(According to Baotintuc.vn)
Source link
Comment (0)