2023-04-23 21:05:52
Jerome Powell (photo by shutterstock, flickr/Federalreserve, unsplash)
Senior officials at the Federal Reserve are signaling at the end of the week about another interest rate hike in May. John Williams, chairman of the Fed in New York, said at the weekend conference that inflation is still high and the central bank intends to use the monetary tools at its disposal to bring it back to the goals of price stability.
“Inflation is still too high” said Williams “We will use the monetary tools at our disposal to restore it to stability” he added.
More in-
As of the end of the week, investors are giving an 80% chance of an additional 0.25% interest rate increase in May. Williams, who is considered to be close in blood to Jerome Powell, chairman of the PEG, asked to moderate the chances of another interest rate hike in May since “the Federal Reserve does not usually talk about the policy they intend to adopt before they say the things in the appropriate forums.”
In recent months, the Fed raised the interest rate at every meeting and now it stands at the level of 5%, which is a very high interest rate that is starting to suffocate the economy. The intention of the Fed is to moderate private spending in order to suppress inflation. At the same time, a new problem has arisen, which is the pressure that is currently being exerted on the banking system and it is driving sleep away from the eyes of the Federal Reserve captains, hence the controversy surrounding further interest rate hikes.
In his speech, Williams also referred to this issue and said that currently the pressures on the American banking system seem to have stabilized and he expects this system to tighten the underwriting conditions for new loans and credits mainly to households so that they reduce consumption.
Comments to the article(0):
Your response has been received and will be published subject to the system policy.
Thanks.
for a new comment
Your response was not sent due to a communication problem, please try again.
Return to comment
#Fed #officials #signal #interest #rate #hike #work