New York Fed: Data Shows Rate Hike May Be Necessary

New York Fed President John Williams said he believes more interest rate work is needed to get inflation back to 2 percent in the United States.

Williams said yesterday that while the Fed said it was the right move to keep interest rates stable three weeks ago, they may have to raise interest rates again at some point due to continued economic activity.

INFLATION HIGHLIGHT

Saying the Fed will rely on data when deciding its next steps, Williams signaled a stronger-than-expected housing market. “I’m not happy with where the price pressures are,” Williams said.

Highlighting recent economic data showing a slowdown in resilient growth and consumer spending, Williams said it’s still too high for relief levels, adding that labor demand remains high and the economy is handling increases. rates “pretty good”.

FED OFFICIALS SUPPORT INCREASED RISK

On the other hand, the Fed published yesterday the minutes of the meeting of the Federal Open Market Committee (FOMC) held on June 13 and 14.

The minutes of the last meeting, in which the policy rate remained unchanged in the range of 5 to 5.25 percent, showed that some officials were in favor of raising interest rates at that meeting.

“Some officials indicated at this meeting that they are in favor of increasing the target range for the federal funds rate by 25 basis points, or that they might support such a proposal,” the minutes said. statement was included.