© Archyde.com The US Federal Reserve member stresses the need to raise interest rates
Arabictrader.com – The President of the US Federal Reserve, James Bullard, warned of the danger of high inflation and the inability to control it and become more dangerous if the US Federal Reserve does not go to raise interest rates, adding that inflation might get out of control in this case.
Pollard called for an increase in interest rates by regarding 100 basis points by next July in an attempt to stop the rise in the inflation index, which rose at the fastest pace in 40 years and reached the level of 7.5% during the past year.
The US Federal Reserve member stressed that 2022 may be the second year in a row that inflation is very high. That’s why, given this situation, the Fed has to move faster and more aggressively than we’ve been moving in other circumstances.
It is noteworthy that the US Federal Reserve member, Neil Kashkari, stressed during previous statements that the bank will do what is required to restore balance to the economy once more, adding that some inflation should fade by itself as the stimulus fades and people turn to buying services.
Kashkari noted that the US Federal Reserve might ease demand by raising interest rates and tightening financial conditions, but that would not address supply-side issues.
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