(Reuters) - Federal Reserve Vice Chair for Supervision Michael Barr on Monday said the U.S. central bank should proceed
"carefully" on monetary policy, adding that his focus is less on how much higher interest rates should go but how long they should stay high.
The Fed last month opted to leave its benchmark policy rate unchanged in the 5.25%-5.5% range, but most policymakers were penciling in another interest rate hike before year's end and fewer rate cuts next year than they had earlier envisioned. There's been a lot of progress on inflation, Barr said, noting that the consumer price index, which was rising at a 9% pace in June of last year, registered about a 3.75% increase in August, and inflation expectations remain anchored at the Fed's 2% target.
His baseline expectation, he said, is for GDP growth to moderate to below its potential, which most Fed officials estimate at 1.8%, and for the labor market to soften further.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Fed's Barr says his focus is on how long to hold rates high'In my view, the most important question at this point is not whether an additional rate increase is needed this year or not, but rather how long we will need to hold rates at a sufficiently restrictive level to achieve our goals,' Barr said in remarks prepared for delivery to the Forecasters Club of New York. The Fed last month opted to leave its benchmark policy rate unchanged in the 5.25%-5.5% range, but most policymakers were penciling in another interest rate hike before year's end and fewer rate cuts next year than they had earlier envisioned. Barr said his assessment of appropriate policy will take account of a range of incoming data, including 'the cost and availability of credit to the economy.'
Lire la suite »
Fed's Bowman: Expects it to be appropriate to raise rates furtherBowman, in prepared remarks to a banking conference, said inflation remains too high and expects progress in lowering it to be slow 'given the current level of monetary policy restraint.' 'I remain willing to support raising the federal funds rate at a future meeting if the incoming data indicates that progress on inflation has stalled or is too slow to bring inflation to 2% in a timely way,' Bowman said. Energy prices also pose a renewed risk to inflation, she said, noting that the latest measure published on Friday of the Fed's preferred inflation gauge - the personal consumption expenditures price index (PCE) for August - showed that overall inflation rose, in part due to higher oil prices.
Lire la suite »
Fed's Bowman: Expects it to be appropriate to raise rates further(Reuters) - Federal Reserve Governor Michelle Bowman on Monday said she remains willing to support another increase in the central bank's policy ...
Lire la suite »
Fed's Bowman: Expects it to be appropriate to raise rates furtherKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Lire la suite »
Fed's Bowman cautions rising energy prices could stall inflation progress, calls for higher ratesShe said she thinks progress on inflation is likely to be slow given the current level of interest rates and said that suggests the Fed will need to further hike rates to bring inflation down in a sustainable and timely manner.
Lire la suite »
Fed Governor Michelle Bowman says she expects it to be appropriate to raise rates furtherThe Federal Reserve Governor said she would support another rate hike if incoming data shows progress on inflation is stalling or proceeding too slowly
Lire la suite »