It soon may be appropriate to slow the pace of increases in the federal funds rate, Lael Brainard, vice chairwoman of the Federal Reserve, said yesterday during an interview with Bloomberg News.
The Federal Open Market Committee today announced it would raise the target range for the federal funds rate to 3.75 to 4%.
Most banking executives believe that interest rates won’t peak until the first half of 2023, according to a new survey by financial technology firm IntraFi.
Federal Open Market Committee members anticipate that further increases in the federal funds rate will be necessary to bring down inflation to the committee’s 2% objective, according to minutes released today for the FOMC’s September meeting.
Federal Reserve Gov. Christopher Waller said today he supports a “significant increase” in the federal funds rate at the next Federal Open Market Committee meeting on Sept. 20-21.
The Federal Reserve must act “strongly” to fight inflation “until the job is done,” Fed Chair Jerome Powell said today in his final public appearance before the Federal Open Market Committee meets Sept. 20-21.
It will be necessary to raise the federal funds rate to “somewhat above 4%” by early next year and hold it there, predicted Loretta Mester, president of the Federal Reserve Bank of Cleveland, during a speech today.
A recent easing in the rate of inflation hasn’t been enough to convince the Federal Reserve to reverse course on raising interest rates, with the Federal Open Market Committee likely to pursue a “restrictive policy stance for some time,” Fed Chair Jerome Powell said during remarks today.
A tight labor market and high inflation convinced the Federal Open Market Committee to unanimously approve a 75 basis point rate-hike in July, according to minutes released today.
Markets expect at least a 75 bps hike at the next FOMC meeting, which takes place July 26-27. More than half of respondents expect the Fed will need to increase rates an additional 100 bps over the next year to tame inflation.