2023-07-14 07:44:50
A senior official of the American Central Bank (Fed) said on Thursday that he favored two further interest rate hikes, one in July and the other before the end of the year, in order to curb inflation. US which, although slowed down, remains high. The Fed decided in June to pause hikes in its key rate for the first time since March 2022 and following ten hikes, in order to assess the consequences of these hikes on the American economy.
Most of its monetary policy committee (FOMC) officials anticipate that two more rate hikes will be needed this year to keep inflation down, according to the “minutesfrom the Fed (minutes of meetings). Governor Christopher Waller, a member of the FOMC, said Thursday to be one of them. “I consider that two more hikes of 25 basis points (…) are necessary this yearhe said in New York, according to the briefing notes for his speech.
Christopher Waller clarified that he supported the June break, saying he believed that “waiting six weeks was prudent risk management“. He said he was reassured by the June data and said he doesn’t see “reason why the first of these two increases would not be decided at our meeting later this monthof July.
Read alsoThe pass-through of rate hikes will “strengthen in the coming months”, according to the ECB
The next Fed meeting will be July 25-26. His statement comes a day following the release of a Fed report that indicated a recovery in the economy since May. A further hike would take the policy rate to its highest level in two decades.
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