Insights from Ex-Fed Vice Chairman: Expect More Interest Rate Hikes as Inflation Battle Persists
According to a recent CNBC interview, Roger Ferguson, the former vice chairman of the U.S. Federal Reserve, believes that the Fed could implement two more interest rate hikes.
The first hike following July is seen as inevitable. With Ferguson citing several factors. Including the Fed’s prior mention of this possibility and the strong performance of the economy, allowing room for another move if data warrants it. The Federal Reserve had previously raised rates for 15 consecutive months to combat inflation. But decided to pause the hikes in June.
Ferguson emphasizes that the Fed remains data-dependent, indicating they were encouraged by the latest consumer price index (CPI) reading. But still face the challenge of reducing inflation to the desired 2% level. He suggests that inflation might remain slightly above 2%, potentially leading to not just one but possibly two more hikes beyond July. Depending on future data analysis.
Clever Robot News Desk 27th July 2023
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