2023-08-08 13:58:32
(Philadelphia) A US central bank (Fed) official said on Tuesday that rates might remain stable at the next meeting in September if the economy maintains its trajectory, a position that is not unanimous among investors. responsible.
“With no new alarming data by mid-September, I think we may be at the point where we can be patient and keep rates stable and let the monetary policy measures we have taken take their toll. job,” Philadelphia Fed boss Patrick Harker said in an interview with the Philadelphia Business Journal.
Opinions differ among Fed officials on whether or not to continue raising rates at the next meeting on September 19-20.
Chicago branch president Austan Goolsbee had also speculated regarding another pause if economic data shows that inflation continues to slow and economic activity and employment remain strong.
Patrick Harker and Austan Goolsbee both have rotating voting rights in 2023 on the Monetary Policy Committee (FOMC), the Fed’s decision-making body.
But a governor of the institution, Michelle Bowman, showed herself in favor of “additional increases” on Monday.
To combat inflation, which last year climbed to its highest level in 40 years, the Fed has raised its rates 11 times since March 2022. Its main key rate is now in a range of 5.25 to 5.50%.
And since then, the rise in prices has slowed sharply, and fell in June to 3.0% over one year, identical according to the PCE and CPI indices.
This remains too high for the Fed, which will bring inflation down to 2.0% over one year.
Patrick Harker is counting on a “slow but certain” decline in inflation, with “only a modest slowdown in economic activity”. The US economy seems in fact able to escape a recession that seemed inevitable not long ago.
“In other words, I see us on the flight path to the soft landing that we all hope for and which has proven quite elusive in the past,” he added.
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