They consider another hike in interest rates

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WASHINGTON. – Christopher Waller, a member of the Federal Reserve’s board of governors, said on Thursday that Will approve a one percent increase in the Fed’s short-term interest rate -A big increase – in the coming weeks if upcoming economic data shows a solid increase in consumer spending.

Such an increase would mean more intensification of the Fed’s fight against rising inflation. A rise in rates will increase the risk that the central bank’s anti-inflationary measures trigger a recession. The last time the Fed raised its rate was in 1981.

At a conference in Idaho, Waller said he supports a 0.75 point increase at the Fed’s next meeting in two weeks after a government report on Wednesday showed consumer inflation had hit its highest level in 40 years. .

But other economic indicators will be released ahead of the next Fed meeting, including a report on June retail sales and home sales and prices this Friday. If those numbers are “materially stronger than anticipated,” Waller said on Thursday, “I would go for a bigger increase in the rate”.

Wednesday’s report indicated an increase of 9.1% in June from the same month a year earlier, the biggest jump since 1981. Much of the inflation was driven by food and gasoline prices, but also by rents, restaurant meals and other services.



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