ECONOMYNEWS, October 2 - Several Federal Reserve officials have spoken out to ease concerns about the possibility of further rate hikes. Among them, Federal Reserve Vice Chair Jefferson said in a speech on Thursday (1st) that the Fed may need more time and economic data before deciding on its next monetary policy move, suggesting no urgency to raise rates again in the short term to curb inflation.
Federal Reserve Vice Chair for Supervision Bowman also signaled opposition to a rate hike in October, saying more time is needed to better understand economic trends. "At present, I don't see an urgent need to take further action. We need to better understand the overall data and remain attentive to risks."
New York Fed President Williams also stated that there is no rush to raise rates again. He noted that since the rate hike in September, yields on government bonds of various maturities have risen further, reflecting investors reassessing the changing macroeconomic landscape. He also emphasized that when formulating policies to achieve goals, it is necessary to consider how a series of shocks affect the economy.
However, Dallas Federal Reserve Bank President Logan held a contrary view, believing the Fed must continue raising rates to fully curb inflation, estimating that interest rates may need to be raised by another 50 basis points or more. She also suggested that rising U.S. government bond yields could help cool down the economy.
Earlier this week, according to federal funds futures pricing, investors had briefly priced in about a 70% chance of another Fed rate hike in October. (yc)
Federal Reserve Vice Chair for Supervision Bowman also signaled opposition to a rate hike in October, saying more time is needed to better understand economic trends. "At present, I don't see an urgent need to take further action. We need to better understand the overall data and remain attentive to risks."
New York Fed President Williams also stated that there is no rush to raise rates again. He noted that since the rate hike in September, yields on government bonds of various maturities have risen further, reflecting investors reassessing the changing macroeconomic landscape. He also emphasized that when formulating policies to achieve goals, it is necessary to consider how a series of shocks affect the economy.
However, Dallas Federal Reserve Bank President Logan held a contrary view, believing the Fed must continue raising rates to fully curb inflation, estimating that interest rates may need to be raised by another 50 basis points or more. She also suggested that rising U.S. government bond yields could help cool down the economy.
Earlier this week, according to federal funds futures pricing, investors had briefly priced in about a 70% chance of another Fed rate hike in October. (yc)
