Last Update: May 10, 2023, 02:09 AM IST
The Fed has launched a vigorous campaign of rate hikes since March last year to rein in inflation. (Photo: Reuters)
The comments from New York Fed President John Williams came a week after policymakers unveiled the tenth and possibly final rate hike in the current cycle.
A top Federal Reserve official on Tuesday left the door open for further interest rate hikes to combat inflation, but stressed that the US central bank’s future decisions should depend on the data.
The comments from New York Fed President John Williams came a week after policymakers unveiled the tenth and possibly final rate hike in the current cycle, saying they would consider the impact of the current hike before determining further moves. do.
But on Tuesday, Williams told the Economic Club of New York: “We haven’t said we raised rates.”
He acknowledged “incredible progress over the past year” in raising rates to bring down inflation, but said: “I think what we’re going to do, as we always do, is to rely on the data.” “
Williams also said he “sees no reason to cut interest rates this year” in his baseline forecast, citing the need to tame stubborn inflation.
“In my forecast, we need to maintain the accommodative stance of policy for some time to ensure that we actually bring down inflation,” he said.
The Fed has launched a vigorous campaign of rate hikes since March last year to rein in inflation.
Its quarter-point increase last week raised the target lending range to between 5.0 percent and 5.25 percent, marking the highest level in nearly 16 years.
While US economic growth has lost steam, with some analysts warning of a possible recession, Williams said Tuesday that he does not expect to see a recession.
But he said he expects the unemployment rate to rise more slowly next year as the labor market continues to cool.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
