Interest rate cut by Fed officials

US Federal Reserve (Fed) officials left the door open for continued interest rate hikes to reduce inflation. However, two officials pointed out that the problems observed in the banking sector may allow inflationary pressures to decrease faster than expected.

“Inflation remains very high, and recent indicators reinforce my view that much work still needs to be done to bring inflation down to the 2 percent price stability target,” said Boston Fed President Susan Collins, in his speech at the National. Meeting of the Business Economics Association yesterday.

Collins, on the other hand, does not have voting rights on the Federal Open Market Committee (FOMC).

‘There is still a lot of work to do’

Minneapolis Fed President Neel Kashkari, who has a vote on the FOMC, also said the Fed has “a lot more work to do” but did not specify what action he would like the Fed to take.

Richmond Fed President Thomas Barkin said in his remarks that monetary policy should be “nimble” under current conditions.

Barkin also said problems related to the financial sector could help the Fed more quickly achieve its mission of bringing inflation down to 2 percent, and warned of uncertainties that could be seen in the coming period. (Reuters)