Fed united on inflation front as Brainard rejects early rate cuts

to raise its benchmark interest rate by three-quarters of a percentage point for a third straight time, Fed Vice Chair Lael Brainard said: "Monetary policy is focused on restoring price stability in a high-inflation environment."

Fed officials have continued in the past week to beat the drum for an aggressive campaign to lower the highest levels of inflation seen in the United States in 40 years. The central bank's policy rate is now in the 3.00%-3.25% range, a full 3 percentage points higher than where it was at the start of 2022, and policymakers have penciled in more rate rises later this year and in 2023.

"At this point the risk of inflation festering feels like a bigger risk than inflation coming down on its own and us having oversteered," Barkin said in comments to reporters after remarks to business officials in Virginia.The Fed officials' remarks coincided with the release of the latest reading of the Fed's preferred measure of inflation, which showedThe personal consumption expenditures price index rose 6.

"Inflation expectations are likely to remain relatively unstable in the months ahead, as consumer uncertainty over these expectations remained high and is unlikely to wane in the face of continued global pressures on inflation," the Michigan survey said. "Uncertainty is currently high, and there are a range of estimates around the appropriate destination of the target range for the cycle," she said. The Fed will have to feel its way forward and see how its rate rises work through the economy, and will act "deliberately and in a data-dependent manner" with future policy actions.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed's Brainard warns restrictive interest rates may be needed 'for some time'Federal Reserve Vice Chair Lael Brainard warned Friday that central bank policymakers will need to raise interest rates higher and keep them elevated for some time to fight inflation. Am I the only one concerned that the vice chair of the fed wears a thumb ring? Dove now a Hawk because they waited toooooooo long
Source: FoxBusiness - 🏆 458. / 53 Read more »

Fed officials warn of additional interest rate hikes to fight inflationSeveral Federal Reserve officials this week endorsed additional interest rate hikes as the central bank tries to bring inflation under control by slowing the U.S. economy. Fed members ignore dem's attack on USA energy. That attack is causing 1/2 the current inflation and will not be defeated by Fed rate increases without economic destruction. It's about the marxist ESG being implemented for the dems by the Fed destroying each American's finances. Good, long overdue, rates should be at 12%. Look to Paul Volcker for inspiration.
Source: FoxBusiness - 🏆 458. / 53 Read more »

Homebuyers face the 'most volatile' mortgage rates as Fed fights inflationMortgage rates, which have recently surged to their highest level since 2008, are also fluctuating more than they have in nearly 30 decades, according to Redfin. Really? We survived the 1980s when rates were at 17%.
Source: FoxBusiness - 🏆 458. / 53 Read more »