Federal Reserve officials say more rate hikes are needed to curb inflation – Economics
Several Federal Reserve Governors and Presidents say more rate hikes are needed to inflation to contain “We’re not done raising rates yet,” said Fed Governor Lisa Cook. “We need to aggressively raise interest rates to contain inflation,” said Minneapolis Federal Reserve Chairman Neel Kashkari.
Fed officials on more rate hikes
Several governors and Federal Reserve chairmen said this week that further rate hikes are needed to curb inflation. Her comments followed a similar statement by Federal Reserve Chair Jerome Powell, who said on Tuesday that additional rate hikes were needed to cool inflation.
At an event hosted by the Joint Center for Policy and Economic Studies on Wednesday, Fed Governor Lisa Cook said:
We are committed to bringing inflation down to our target… So I think we’re not done raising interest rates and need to keep interest rates tight enough.
“We’re moving in smaller increments now,” Cook added. “That will give us time to assess the impact of our quick action on the economy.”
After a series of 75 basis point rate hikes over the past year, the US Federal Reserve increased interest rates by 25 basis points to between 4.5% and 4.75% last week.
Citing the January jobs report, which showed nonfarm payrolls growth of 517,000, Fed Governor Christopher Waller said at Arkansas State University’s agribusiness conference on Wednesday, “We’re seeing these efforts starting to pay off, but we have to.” go even further.” He emphasized:
It could be a long battle as interest rates have been higher for longer than some are currently expecting. But I will not hesitate to do what is necessary to get my job done.
New York Fed President John Williams said at a Wall Street Journal event on Wednesday that the move to a policy rate of between 5.00% and 5.25% “appears to be a very reasonable idea of what we’re going into need to do this year to maintain supply and reduce demand imbalances.”
Additionally, Minneapolis Federal Reserve Chairman Neel Kashkari said Tuesday on CNBC, “We have work to do. We know that raising interest rates can bring inflation under control.” He added:
We need to aggressively raise interest rates to limit inflation and then let monetary policy work its way through the economy… I don’t see that we’ve made enough progress to declare victory yet.
How long do you think the Fed will keep raising rates? Let us know in the comment section below.
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