2023-08-08 15:31:00
Has the rate hike ended?Fed’s vote committee’s latest statement: further rate hikes may not be needed
News from the Financial Associated Press on August 8 (Editor Zhao Hao)On Tuesday (August 8) local time, Philadelphia Fed President Patrick Harker said that the Fed has made progress in fighting inflation and boosting the economy, and may have reached a position to keep interest rates unchanged.
As the rotating voting member of the Federal Open Market Committee (FOMC) this year, Harker’s statement is very representative, which may mean that the US interest rate has reached the highest point of this round of interest rate hike cycle.
A press release published on the official website of the Philadelphia Fed also stated that,“We’ll probably keep rates steady and let monetary policy do its thing.”
Two weeks ago, the Federal Reserve announced a 25 basis point rate hike, raising the target range for the federal funds rate to 5.25%-5.5%, the highest level since 2001. This is also the Bank’s 11th rate hike since it started the current round of rate hikes last year, with a cumulative rate of 525 basis points.
Harker said that without any very surprising new data between now and mid-September, “I believe theWe may have reached a point where we can be patient, keep rates on hold, and let previous monetary policy actions work.”
On Monday, the Federal Reserve’s “three in command” and New York Fed President Williams said, “Monetary policy is in a good position-we’ve got the policy we need.” This expression was also interpreted as “the Fed may not Keep raising rates.”
While many economists fear a U.S. recession, Harker believes inflation will gradually move toward the Fed’s 2 percent target, unemployment will rise only “slightly” and economic growth should be “slightly slower” than it was earlier this year. time speed.
However, Harker emphasized that the Fed is unlikely to cut interest rates in the short term. “If we keep interest rates unchanged,Then it will need to stay there for a while.He added, “I do see being on course for the soft landing we all hope for, but that has proven to be quite elusive in the past. “
On Thursday, the U.S. Bureau of Labor Statistics will release its July Consumer Price Index (CPI) report. The market expects the annual rate of US CPI to rebound slightly to 3.3% from 3% in June, while the annual rate of core CPI may further slow down to 4.7% from 4.8%.
US CPI annual rate
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