Eyes on inflation data critical to Fed rate decision

Federal Reserve officials said US inflation data, due to be released this week, will help them decide whether to ease the pace of rate hikes at their next meeting.

The central bank is thought to be able to raise interest rates by 25 basis points after big hikes implemented in most of 2022 at the policy meeting on January 31 and February 1.

POSSIBILITY OF INCREASE 25 BASE POINTS SERIOUS

Atlanta Fed President Raphael Bostic told reporters yesterday that they may seriously consider a 25 basis point hike if US consumer inflation data, due to be released on Thursday, supports the slowdown indicated by the latest employment data.

“I want us to finally get to the point of 25 basis point rate hikes,” Bostic said. Exactly when that will happen will depend on the incoming data,” he said.

In an interview with the Wall Street Journal yesterday, San Francisco Fed President Mary Daly, who was asked about her preference for an interest rate hike, said that both 25 and 50 rate hikes basic points were on his agenda. (Reuters)