(Washington Composite Television) Several officials of the Federal Reserve show that they will not relax their tightening policies before inflation is controlled.However, former US Treasury Secretary Samer believes that the latest inflation data is encouraged, and the time that the United States may fall into economic recession seems to have been postponed.
John Williams, President of the New York Federal Reserve Bank, Mary Dala, President of San Francisco Federal Reserve Bank, and Cleveland Federal Reserve Bank President Loretta Metter on Friday (December 16)It has been emphasized that the Federal Reserve is committed to achieving the target level that allows inflation to fall to 2%, and claims that clear evidence shows that the price pressure is relieved.
The interest rate next year may be higher than 5%
Williams said in an interview with Bloomberg: "We have to take the necessary actions."
For the prediction of interest rates at a level higher than 5%next year, Williams said that if it is required to curb inflation, "interest rates may be higher than our forecasts."
He tried to dilute some observer's interest rates or have to rise to 6%or even 7%of forecasts.He said: "For me, how high we adjust the interest rate to the level, it actually depends on the inflation and imbalances we have observed."
Mest also believes that when the interest rate is reduced, it is appropriate, which is related to "the evidence we see, and it is a good evidence that the inflation rate is about to fall to 2%."
Dali attended an online activity of the American Institute of Enterprise Research that decision makers are committed to reducing inflation, but the task is still far away from completing the task.She said: "We still have a long way to go ... We are far from the goal of stabilizing the price."
However, Samers believes that the latest inflation data in the United States shows that the time for the decline in the US economy may be later than what they thought before.
According to data released by the US Department of Labor on Tuesday (December 13), the US Consumer Price Index (CPI) in November increased by 0.1%month -on -month, which was narrowed from October and was lower than the market expectations.
Summers said: "Our situation is better than what I thought before, I think this data is very good ... It seems that (the expected economic recession) is indeed postponed later."
Sammers has severely criticized the Fed's economic forecasts several times since last year, including delayed no more radical currency tightening policies.However, since March, the Fed has raised interest rates more than four percentage points and promised to take further action.In this regard, Samers believes that the Federal Reserve is now "roughly correct."
He said: "I am happy to catch up with the Fed's head."
