Fed president sees inflation fight stretching into 2024
The
St. Louis
"I think we'll probably have to stay there all during 2023 and into 2024," Bullard said of that range.
In early November, the bank hiked interest rates to a range of 3.75 to 4 percent, the fourth consecutive increase of 75 basis points.
Meeting minutes from the
While hiking interest rates raises borrowing costs to help curb demand in an overheated economy, it can also eat into other sectors of the economy that are now healthy, including low unemployment rates and consumer spending levels.
But Bullard told MarketWatch that it was beneficial for the Fed to fight inflation while unemployment is low.
"The fact that the labor market is so strong gives us license to pursue our disinflationary strategy now and try to get the inflation under control now," he said. "So we don't replay the 1970s, where the
Some leading economists expect the
Bullard said a recession is not inevitable, but it is possible the economy hits a "shock" that tips the
The annual inflation rate fell from 8.2 percent in September to 7.7 percent in October, but that's still much higher than the 2 percent goal for the Fed.
New York Federal Reserve President
"Persistently high inflation undermines the ability of our economy to perform at its full potential," Williams said, according to comments shared on Twitter.
Williams said "we've seen significant improvement in global supply chains" but that it would "not be enough to get inflation" down to the central bank's 2 percent goal.
"My baseline view is that we are going to need to raise rates from where they are today," he added.
Supreme Court appears uncomfortable with Joseph Percoco bribery case
Edmunds: How to mitigate rising auto loan interest rates
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News