Bloomberg News reports that two Federal Reserve officials interpreted that the signals from the policymakers might be close to almost being done with the rate increase. However, one only partially gave up on more hikes once inflation started a downward journey.
What did Susan Collins say?
According to Fed President Susan Collins of Boston, it may require additional increments, and they may also be close to holding a substantial amount of time. Collins also said that although they might have a substantial amount of time, where it might peak is still not the right time to indicate. Collins revealed that they will likely be near but might have to increase a little more.
Susan Collins’s take on the us economy
While speaking to several media outlets, she said that the US economy is yet to slow down and it has not slowed down enough to put inflation on a downward trajectory path. This suggests that the Fed might need to raise the rates even further. She said she is one of the policymakers who think there is still one more rate hike.
While speaking independently on Thursday, the Fed president of Philadelphia, Patrick Harker, echoed the same sentiment. He said that the Fed must keep the interest rate at the prevailing level, as it is assessing the impact it will have on the economy.
What are the central banks doing globally?
The central bankers worldwide have been gathering in Jackson Hole while a gathering is underway at the Federal Reserve Bank of Kansas City annual event.
Investors parsing
In July, the Fed raised the rate from 5.25% to 5.5%, the highest level in 22 years. As such, the investors will be trying to squeeze out as many clues as possible related to the outlook of the interest rates.
Bloomberg News reports that the officials possess more economic data for reviewing before the next meeting that is scheduled to be held on September 19th and 20th. It will include job reports and fresh releases on inflation.
Reacceleration for the economy
Former Fed president of St. Louis James Bullard, revealed in an interview while talking to Bloomberg Television that a pickup or acceleration in economic activity in this summer might defer plans for the fed for wrapping to the interest rate hike.
Bullard put down his papers last month for becoming dean of Purdue University’s business school. So he could not attend the conference. He reiterated the remarks that were spoken earlier that fears of a recession are generally overblow and to gain stronger growth in the economy, it would be required for higher rate hikes and continuous combat with inflation.
