The Federal Reserve needs to raise interest rates.”a little” above the range of 5% to 5.25% to control inflation, said Wednesday the president of the entity in Cleveland, Loretta Mester, who did not want to reveal what would be her preferred decision for the next meeting.
“We are not at 5% yet, we are not above 5%, which I think is going to be necessary given my forecasts for the economy”Mester said in an interview with the Associated Press. “I just think we need to keep moving forward, and we will discuss at the meeting how much to do”.
The Fed’s benchmark rate for overnight loans is currently in a target range of 4.25% to 4.5%.
Investors expect the central bank to raise the rate by a quarter of a percentage point at the end of its next two-day meeting, which will take place between January 31 and February 1, as inflation appears to have passed its peak. .
“We’re starting to see the kind of actions we need to see.” Master added. “Good signs that things are moving in the right direction (…) That is an important input in the way we are thinking about where policy should go.”
Fed Chairman Jerome Powell tested positive for COVID-19 on Wednesday and is experiencing mild symptoms, the central bank said in a statement on Wednesday.
Source: Reuters
Source: Gestion
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