2023-05-27 18:00:47
The president of the Federal Reserve Bank of St. Louis, James Bullardbelieves that the Fed will have to raise two more times this year interest rates to control inflation.
“I think we are going to have to raise them more,” he said this past Monday at an event in Florida. “I have two more increases in mind for this year,” he added, although without specifying when they would occur.
Bullard, known for being a hawk on monetary policy, is not voting this year on decisions made on Federal Open Market Committee (FOMC, for its acronym in English) of the Fed, which decided on May 3 to unanimously approve a rise in the country’s interest rates of 25 basis points, until placing them in a target range of between 5% and 5.25%.
Unlike the previous 25 basis point increase on March 22, the Fed did not mention in May that further interest rate hikes would be needed to tame price rises and bring inflation back to the 2% target. In this way, we could find ourselves before a possible pause in the rises.
The next possible revision of this figure will be announced on June 14, the day on which Fed officials will meet again and must weigh the risks of continuing with its monetary tightening policy after the financial instability unleashed during the Silicon Valley collapse. Bank (SVB) and which, for the moment, has been contained following the acquisition of First Republic Bank by JP Morgan.
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