St. Louis Federal Reserve President James Bullard said he became a big supporter of raising US interest rates by 75 basis points for the third time in a row during the bank’s meeting this month.
Bullard added that the recent US jobs report that showed the strength of the US economy is the main support behind raising interest rates during the next bank meeting, and also indicated that the low inflation report will be welcome among the bank officials.
James reiterated his support for raising the US Federal Reserve’s inflation target to 3.75% – 4% from current levels of 2%, adding that interest rates should remain elevated for a longer period.
For his part, Federal Reserve Chairman Jerome Powell said that the bank will not compromise in curbing high inflation rates until this task is successfully completed.
Powell added during his speech at the Cato Conference yesterday, Thursday, that there is still hope that the bank will continue to raise interest rates to reduce inflation without the high social costs contained in the bank’s previous battles once morest inflation.
It is worth noting that the US inflation rate (consumer price index) is scheduled to be released in the middle of next week, and the US Federal Reserve’s meeting to raise interest rates will be held on September 20-21.