Federal Reserve Officials Plan for Higher Rates as Inflation Threat Persists
The message was loud and clear from multiple Federal Reserve officials: interest rates will stay higher this year, the benchmark rate might increase, and it is unlikely there will be any rate cuts this year. Inflation is an issue that is still plaguing monetary policymakers, and restoring price stability, even in the face of a recession, is the chief priority for the U.S. central bank.
Since March 2022, the federal funds rate has been raised by 500 basis points to its highest level since late 2007.
Inflation is the Top Job
Atlanta Fed Bank President Raphael Bostic does not see any rate cuts “until well into 2024,” even if the U.S. economy slips into a recession….