A run of strong economic data and signs that inflation remains stubbornly high could lead the Federal Reserve to raise its benchmark rate higher in the coming months than it has previously forecast, several Fed officials say
On Thursday, Christopher Waller, a member of the Fed’s influential Board of Governors, said that if the economy continued to show strength and inflation remained elevated, the central bank would have to lift its key rate above 5.4%. That would be higher than Fed officials had signaled in December, when they projected it would peak at roughly 5.1% this year.
The Fed’s goal is to cool the economy by raising the cost of borrowing and slowing business and consumer spending. More modest growth probably would help slow inflation to the Fed’s 2% target. Fed officials next meet March 21-22, when they are expected to raise their key rate by a quarter-point to about 4.9%.
“Although inflation has been coming down since the middle of last year,” Waller said, “the recent data indicate that we haven’t made as much progress as we thought.”America’s employers added a stunning 517,000 jobs in January, a surprisingly strong gain in the face of the Federal Reserve’s higher interest rates.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Wage growth is slowing. Blame the Federal Reserve.Workers flexed their muscles in 2022, with strikes surging and a labor shortage pressuring businesses to lift wages. Now, metrics show that wage growth peaked in the middle of last year and has since slowed.
Leer más »
The cost of the Federal Reserve's 'full employment': Migrant child laborContrary to the narrative that snowflake millennials caused the 'Great Resignation,' keeping the labor market artificially tight, a new study from financiers at the University of British Columbia determined that almost all of the drop-off from the labor force since the start of the pandemic came…
Leer más »
Biden should follow Carter's lead, not Elizabeth Warren's, in nominating Federal Reserve vice chairDespite inflation initially falling from the near double digits last June through the end of the year, inflation is three times higher than what the Federal Reserve considers acceptable, and it is evidently rising. Between the Fed's preferred inflation measure skyrocketing last month and the…
Leer más »
FBI attempting to locate man accused of molesting minor in Manhattan BeachFederal agents believe Edgardo Feralin Dormido Jr. fed to the Philippines.
Leer más »
Applications for jobless claims fall for 3rd straight weekFederal Reserve rate hikes have done little to cool a red-hot U.S. job market.
Leer más »
Stock futures tick lower on Thursday night: Live updatesU.S. stock futures inched down as investors contemplated the latest comments from Federal Reserve officials.
Leer más »