Source: Bloomberg
Author: Jonnelle Marte, Mackenzie Hawkins, Caraina Saraiva
A number of Federal Reserve officials emphasized that it is necessary to continue to raise interest rates. Under the continuous price pressure, the final interest rate may reach a higher level than previous expectations.
Four officials published similar information at several activities on Wednesday. They welcomed the recent slowdown of inflation and warned that the struggle had not won.
Investors are assessing the Federal Reserve to raise interest rates to high levels. After the strong non -agricultural employment data is announced, some people's bet on interest rates may reach 6%.
A event hosted by the New York Federal Reserve's president at the Wall Street Journal, "We need to maintain sufficient restricted policy stance. This state may be maintained for several years to ensure that the inflation rate returns to 2%."
The Federal Reserve raised the benchmark interest rate by 25 to 4.5%-4.75%last week.
Officials' prediction median in December last year was that this year's interest rates will be topped at 5.1%, which means that there are two rate hikes of 25 base points.
Williams, vice chairman of the Federal Public Marketing Committee, said, "What we need to do this year to balance supply and demand and reduce inflation, the prediction in the dotmap is still a very reasonable view."
Powell has said that interest rates need to continue to rise to curb inflation. If the price pressure continues, the interest rate may be higher than expected.
In December last year, the Fed's favored price index rose from 7%in June to 5%year -on -year, but it was still higher than the Fed's target of 2%.
The director Christopher Waller stated at the State University of Arkansas, "Although we have made progress in reducing inflation, I want to make it clear that our mission has not yet been completed. This may be a long struggle. The time of rising interest rates has increasedIt will be longer than some people's current expectations. "
Investors have raised the betting of interest rates to about 5.15%, close to the latest predictions of the Federal Reserve, but this week, some big bets that reached 6%of interest rates also appeared this week.
Waller predicts that economic growth in the first quarter will slow down, but it will still maintain positive growth. He said that although the strong labor market has risk of inflation, it is one of the motivation to support the economy.
Another director Lisa Cook said earlier on Wednesday that officials are committed to curbing inflation and it is necessary to further tighten the monetary policy, but she tends to maintain a gradual approach.
She said at a event in Washington, "Our interest rate hikes have not been completed, and monetary policy needs to maintain sufficient restrictions."Step by step "will make us have time to evaluate the impact of fast action on the economy."
NEEL Kashkari, the president of Minne Plus Fed, also expressed similar views. He said that he must respond to the impact of wage growth through interest rate hikes.
It said, "In my opinion, there are not many evidence that the interest rate hike operation that has been adopted so far has a great impact on the labor market. We need to make the labor market a balance between supply and demand."
