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One more installment of interest rates hike is assumed to be around the corner. The rumors and skepticism emerged after several slight indications. On Wednesday, September 7th, 2022, Vice Chair Lael Brainard was speaking at a conference organized in New York. During her speech she raised the possibility of the Fed hiking the interest rates again.
Brainard said they would go along until the inflation gets down. Such statements along with few other indications of Federal Reserve officials confirms there would be a raise in interest rates. And this will continue till the clear indication of inflation rate comes down.
On September 21st, 2022, there will be the meeting of the Federal Open Market Committee. It will be the first get together after the annual event of Jackson Hole Economic Symposium retreat organized last month in Wyoming. The upcoming interest rate hike is expected to take place on the same day.
In a speech on Wednesday, President of Cleveland Federal Reserve, Loretta Mester said she anticipates a drop in month-to-month readings of inflation before its peak. She said to guard against the inflation until declaring a complete victory over it. The US Central Bank needs to keep increasing the interest rates more than 4% and maintain the same situation for some time.
In July this year, Fed Chairman Jerome Powell indicated the upcoming decisions to be dependent upon the data. This meant that the consumer price index releasing by next week will be taken under consideration to calculate the optimum reading on inflation. Moreover, the job report from the Labor Department for August released last week indicated that things are now settling down in the labor market.
The Fed’s upcoming interest rate hike is expected to increase by 0.75% or 75 basis point, similar to last week. On Wednesday, the Wall Street Journal reported the possibility of the Fed going for 0.75 percentage point increase in interest rates.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
