2023-08-05 16:12:26
(Washington) An official of the American central bank (Fed) judged on Saturday that additional rate hikes would certainly prove necessary to further lower inflation in the United States, following already 11 increases since March 2022.
” I am expecting […] more rate hikes are likely to be needed to bring inflation back to the Fed’s target of 2%, Michelle Bowman, one of the institution’s governors, said in a speech at Colorado Springs (Colorado).
“The recent drop in inflation was positive,” she said. Inflation, in fact, fell to 3.0% year on year in June, both for the PCE index, favored by the Fed, and for the CPI, which is the benchmark.
“We should remain open to raising the fed funds rate at a future meeting if the data indicates that progress on inflation has stalled,” Ms.me Bowman.
She said she would also monitor “signs of slowing consumer spending and signs of easing labor market conditions,” which will show whether economic activity is slowing, a necessary condition for price pressure to is permanently loosened.
Another Fed official, Austan Goolsbee, president of the Chicago branch, who this year has rotating voting rights at meetings, had for his part raised the possibility of a new break.
If economic data to be released by the September 19-20 meeting shows that inflation continues to ease and economic activity and employment remain strong, “I think everyone will be comfortable to stay where we are,” he said.
The unemployment rate fell to 3.5% in July, but job creations were fewer than expected, and those of the previous two months revised downwards.
The Fed last week raised rates for the 11e times since March 2022, following a break at its previous meeting in mid-June. Its main key rate is now in a range of 5.25 to 5.50%.
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