Fed Governor Christopher Waller said he's willing to consider what would be the most aggressive rate hike in decades at the central bank's July meeting.
, or 100 basis point, increase in the Fed's benchmark short-term borrowing rate. The probability for that outcome stood at nearly 80% Thursday morning, according to CME Group data.
If the Fed would go the 100 basis point route, it would mark the biggest one-month increase since the early 1980s when the central bank was trying to control runaway inflation. Getting prices down is the paramount mission of the Fed now, said Waller, who expects still more rate hikes even after this month's.
"I think we need to move swiftly and decisively to get inflation falling in a sustained way, and then consider what further tightening will be needed to achieve our dual mandate," he said.Worries are mounting that the U.S. is headed for or already in a recession, but Waller said the strength of the jobs market has him "feeling fairly confident that the U.S. economy did not enter a recession in the first half of 2022 and that the economic expansion will continue.
Even with the Fed tightening, he said he thinks the economy can achieve a "soft landing" that won't include a recession. U.S. GDP contracted 1.6% in the first quarter, and the Atlanta Fed's GDPNow tracker is indicating a 1.2% decline in Q2, meeting the rule-of-thumb definition of a recession.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
US: Upward pressure on core goods prices is an unwelcome development for the Fed – Wells FargoThe US Consumer Price Index rose in June by 9.1% compared to the previous year, the highest rate since 1981. The number was above the 8.6% reading of
Les mer »
Perspective | With Fed rate increases, the economy’s free ride is overFederal Reserve rate increases have already hit the stock market and are cooling housing prices — and more rate hikes are expected in the months ahead.
Les mer »
Richmond residents fed up with dead fish at Lakes of Mission Grove community pondA Richmond community is dealing with a different kind of problem in this heat.
Les mer »
Market Wrap: Bitcoin Snaps Five-Day Losing Streak; Even Traders See More Hawkish FedBTC fell 4.5% minutes after the U.S. consumer price index showed June inflation rising to 9.1% but has since recovered.
Les mer »
Inflation May Have Peaked, but the Fed Won’t Back OffGasoline prices have slipped, while cooling in other prices suggest lower inflation readings in the months ahead.
Les mer »