
Boston Fed President: Inflation Remains Too High
The president of the Federal Reserve Bank of Boston believes that inflation still remains too high and that policymakers are keeping an eye on price stability as it plays out over time.
The president of the Federal Reserve Bank of Boston believes that inflation still remains too high and that policymakers are keeping an eye on price stability as it plays out over time.
Raphael Bostic, president of the Federal Reserve Bank of Atlanta and a member of the Fed’s interest rate policy committee, doesn’t think another hike is needed. But he’s watching how the current high interest rates are working their way through the economy.
With inflation in the United States still excessive, most Federal Reserve officials expect to raise interest rates further this year, Chair Jerome Powell told a House committee Wednesday.
Poised to raise interest rates Wednesday for a 10th time, Federal Reserve officials are facing two competing economic trends that could make their future rate decisions more difficult and treacherous.
The Federal Reserve extended its fight against high inflation Wednesday by raising its key interest rate by a quarter-point, its eighth hike since March. The Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.
Fed officials will likely engage in a fraught debate over whether it may soon be time to slow its rate hikes, which are intended to cool the worst inflation in four decades but are also raising the risk of a recession.
Intensifying its fight against chronically high inflation, the Federal Reserve raised its key interest rate Wednesday by a substantial three-quarters of a point for a third straight time, an aggressive pace that is heightening the risk of an eventual recession.
Conflicting signs about the health of the U.S. economy have thrust the Federal Reserve into a difficult spot as its interest rate-setting committee begins its latest meeting.
Central bank officials also forecast four additional hikes in 2023, which would boost its benchmark rate to 2.8 percent.
Treasury Secretary Janet Yellen said Tuesday that she is not predicting when the Federal Reserve may need to start raising interest rates.
President Donald Trump has repeatedly attacked the Federal Reserve over interest rate policy and tried to appoint his political allies to its board, but why should you care? Because politicization of the Fed puts the entire U.S. economy at risk.