Federal Reserve policymakers appear split on what to do next with interest rates in their work to cool inflation but those looking for yet another increase are raising the risk of recession for the world's largest economy, Pantheon Macroeconomics says.
They said history of the past few cycles shows that the low in inflation tends to come almost two years after the peak. The"Given that the cumulative hikes in this cycle have been the steepest since 1980, we are very confident in arguing now—just 14 months after the first hike—that a great deal of downward pressure on inflation is in the pipeline," they said.
"If there's going to be a bias to action, for me it would be a bias to increase a little further as opposed to cut,"Also among Fed voices,last week indicated the central bank may not be able to pause rate hikes at its upcoming meeting. "The data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren't there yet," she told the Texas Bankers Association in San Antonio.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FXStreetNews - 🏆 14. / 72 Read more »
Fed likely to pause interest rate hikes as inflation set to meet target: ZandiThe Fed is likely going to pause interest rate hikes as inflation starts to cool down, Moody's chief economist says
Source: BusinessInsider - 🏆 729. / 51 Read more »