“We need to get the [benchmark policy interest] rate up to neutral, which I put about 2.5% in nominal terms. We need to do that expeditiously,” San Francisco Fed President Mary Daly said.
The time to pause the rise in interest rates is when the Federal Reserve gets its benchmark policy interest rates up to about 2.5%, said San Francisco Fed President Mary Daly on Wednesday.
“I need to see some real progress on inflation. Otherwise, I would think we just move the rate until we find ourselves at least at neutral and then we look around and see what else needs to be done.” Those two rate hikes would push up the Fed’s benchmark rate up to a range of 1.75%-2%, still short of Daly’s estimate of neutral.
With the stock and bond markets reacting strongly to the Fed’s rate hike plans, economic conditions might also be evolving in a similar manner, he said.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Biden plots inflation fight with Fed chair as nation worriesPresident Biden is set to meet with Federal Reserve Chairman Jerome Powell as soaring inflation takes a bite out of Americans’ pocketbooks.
Les mer »
Yellen admits being wrong about path of inflation while Biden supports FedTreasury Secretary Janet Yellen backtracked on earlier statements she made on the threat posed by inflation, citing COVID-19 and the war in Ukraine.
Les mer »
Biden plots inflation fight with Fed chair as nation worriesFocused on relentlessly rising prices, President Joe Biden plotted inflation-fighting strategy Tuesday with the chairman of the Federal Reserve, with the fate of the economy and his own political prospects increasingly dependent on the actions of the government’s central bank.
Les mer »
Biden's inflation plan calls on the Fed, Congress to act, showing limits of executive responsePresident Joe Biden's plan to address inflation calls on Congress and the Federal Reserve to fix the issue and reveals limited action from the White House.
Les mer »
Fed paper looks at the potential effects of CBDC on monetary policyThe Fed released a paper that portrays four possible scenarios in which CBDCs could have significant effects on the US economy. The study analyzes the hypothetical impact from the perspective of the Fed, commercial banks, and U.S. households.
Les mer »