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Additional Rate Hikes Needed says Fed official


Warlord

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HOLA441

Interest rates will likely need to be higher to eliminate inflation from the U.S. economy, says Federal Reserve Gov. Michelle Bowman.

Speaking at a business conference in Alberta, Canada, on Oct. 2, the central bank official argued that policymakers would need to pull the trigger on additional rate hikes to tackle price pressures, particularly as the recent spike in energy prices threatens the institution's gains over the past year.

"Inflation continues to be too high, and I expect it will likely be appropriate for the Committee to raise rates further and hold them at a restrictive level for some time to return inflation to our 2 percent goal in a timely way," Ms. Bowman said.

Since March 2022, the Fed has raised the benchmark fed funds rate by 500 basis points to a target range of 5.25 percent and 5.5 percent, the highest level in 22 years. While the consumer price index has eased since hitting a peak of 9.1 percent in June 2022, the country has witnessed a reacceleration in inflation.

https://www.theepochtimes.com/article/additional-rate-hikes-needed-to-defeat-inflation-feds-bowman-warns-5502847?ea_src=frontpage&ea_med=top-news-us-0-large-1

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Could you imagine Bailey, or anyone at the BOE, ever coming out with a clear statement like this? Yes, I know it's a case of watch what they do, not what they say, but still....

"Inflation continues to be too high, and I expect it will likely be appropriate for the Committee to raise rates further and hold them at a restrictive level for some time to return inflation to our 2 percent goal in a timely way," Ms. Bowman said.

 

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48 minutes ago, dpg50000 said:

Could you imagine Bailey, or anyone at the BOE, ever coming out with a clear statement like this? Yes, I know it's a case of watch what they do, not what they say, but still....

"Inflation continues to be too high, and I expect it will likely be appropriate for the Committee to raise rates further and hold them at a restrictive level for some time to return inflation to our 2 percent goal in a timely way," Ms. Bowman said.

 

no, and that's why the pound is going bye bye. 

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1 hour ago, dpg50000 said:

Could you imagine Bailey, or anyone at the BOE, ever coming out with a clear statement like this? Yes, I know it's a case of watch what they do, not what they say, but still....

"Inflation continues to be too high, and I expect it will likely be appropriate for the Committee to raise rates further and hold them at a restrictive level for some time to return inflation to our 2 percent goal in a timely way," Ms. Bowman said.

 

The Fed tell Bailey what to do.

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7 hours ago, Warlord said:

Interest rates will likely need to be higher to eliminate inflation from the U.S. economy, says Federal Reserve Gov. Michelle Bowman.

Speaking at a business conference in Alberta, Canada, on Oct. 2, the central bank official argued that policymakers would need to pull the trigger on additional rate hikes to tackle price pressures, particularly as the recent spike in energy prices threatens the institution's gains over the past year.

"Inflation continues to be too high, and I expect it will likely be appropriate for the Committee to raise rates further and hold them at a restrictive level for some time to return inflation to our 2 percent goal in a timely way," Ms. Bowman said.

Since March 2022, the Fed has raised the benchmark fed funds rate by 500 basis points to a target range of 5.25 percent and 5.5 percent, the highest level in 22 years. While the consumer price index has eased since hitting a peak of 9.1 percent in June 2022, the country has witnessed a reacceleration in inflation.

https://www.theepochtimes.com/article/additional-rate-hikes-needed-to-defeat-inflation-feds-bowman-warns-5502847?ea_src=frontpage&ea_med=top-news-us-0-large-1

Well, that spooked the horses!

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1 hour ago, Warlord said:

Music to @Huggy's ears?

 

It certainly is dear chap as it's all about the Fed, always has been. Andrew 'Sorry not sorry' Bailey is a mere passenger, licking the windows in Jerome's special bus.

People made money off the back of the Fed's near zero IR policy, they thought they were special feckers. Let's see what kind of 'special' they are over the next year or two (or five/ten). I want to hear screaming :)

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5 hours ago, dpg50000 said:

Could you imagine Bailey, or anyone at the BOE, ever coming out with a clear statement like this? Yes, I know it's a case of watch what they do, not what they say, but still....

"Inflation continues to be too high, and I expect it will likely be appropriate for the Committee to raise rates further and hold them at a restrictive level for some time to return inflation to our 2 percent goal in a timely way," Ms. Bowman said.

 

Well, Bailey n crwe now have to come out with somethign along the liens of - 

Well, you know we said No more IR increases ... Well, weve now got to do some more.

BoE are a price taker not a price maker in terms of IRs.

 

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7 minutes ago, spyguy said:

Well, Bailey n crwe now have to come out with somethign along the liens of - 

Well, you know we said No more IR increases ... Well, weve now got to do some more.

BoE are a price taker not a price maker in terms of IRs.

 

Bailey is currently in the process of writing his next speech, although he'll probably only need to spend 2 minutes on it given it'll just be a rehash of his previous "Expect a marked fall in UK inflation" BS. And then.... GBP 🔻

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