Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, is a voter on the Federal Open Market Committee (FOMC) this year.
Three U.S. Federal Reserve officials on Thursday (30th) were open to raising interest rates further to curb high inflation. Two of them pointed out that the problems in the banking industry may cause enough headwinds to the economy and that price pressures will be stronger than expected. Descend faster.
"Inflation is still too high, and recent indicators reinforce my view that it's going to take inflation down to There is more work to be done on the 2 percent target associated with price stability." However, she also said the Fed's move on rate hikes may be close to completion after last week's 1-yard hike.
Collins has no voting power at the Fed this year.
Collins referred to the forecast released by the Fed last Wednesday, which believes that there will be one more rate hike this year. She sees the forecast as "a reasonable balance between the risks that monetary policy will not be restrictive enough to bring inflation down, and that economic activity will slow more than is needed to stabilize prices."
Minneapolis Federal Reserve Bank President Neel Kashkari also said on a separate occasion that the Fed had "more work to do" in pushing inflation back to its 2 percent target, but gave no specifics. indicated how much further he thought rates would need to be raised to do the job. He is entitled to vote this year.
According to Reuters analysis, the key factor for the Fed to reduce pressure on inflation is the turmoil in the banking system caused by the failure of Silicon Valley Bank and other financial institutions. Bank failures forced authorities to boost market liquidity ahead of the Fed's last policy meeting; banks also drew a record amount of emergency liquidity from the Fed.
"While the banking system remains strong and resilient, recent developments could lead to a somewhat more conservative outlook for banks and tightening of lending standards, which in turn could lead to a slower economy and less inflationary pressures," Collins said. "These conditions may partially offset the need for further rate hikes."
Richmond Federal Reserve Bank President Thomas Barkin (Thomas Barkin) said that under the current circumstances, monetary policy needs to be "flexible" and that problems in the financial sector can help the Fed complete the task of bringing inflation back to 2% faster, but Barkin King cautions against future uncertainty. "It is possible that tighter credit conditions, coupled with the deferral effect of our interest rate adjustments, will bring inflation down relatively quickly. But there are still other reasons for price pressures to take some time to ease." Barkin did not vote on the FOMC right.
Cashari believes that the handling of banking issues is still at an early stage. "The panic and stress in the banking industry often takes longer to resolve than you think," he said. "It may take a while before we know, is there more to lose?"
Collins was optimistic about the economy, but pointed to an impending slowdown, adding that perhaps the unemployment rate needs to rise a bit to help keep wage inflation down.
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