(Washington) An official of the American central bank (Fed) judged on Saturday that additional rate hikes would certainly prove necessary to further lower inflation in the United States, after already 11 increases since March 2022.
“I expect…additional rate hikes will likely be needed to bring inflation back to the 2% target” the Fed is targeting, said Michelle Bowman, one of the Fed’s governors. institution, during a speech in Colorado Springs (Colorado).
“The recent drop in inflation was positive,” she said. Inflation, in fact, fell to 3.0% year on year in June, both for the PCE index, favored by the Fed, and for the CPI, which benchmarks.
“We should remain open to raising the fed funds rate at a future meeting if the data indicates that progress on inflation has stalled,” Bowman said.
She said she would also monitor “signs of slowing consumer spending and signs of easing labor market conditions,” which will show whether economic activity is slowing, a necessary condition for price pressure to is permanently loosened.
Another Fed official, Austan Goolsbee, president of the Chicago branch, who this year has rotating voting rights at meetings, had for his part raised the possibility of a new break.
If economic data to be released by the September 19-20 meeting shows that inflation continues to moderate and economic activity and employment remain strong, “I think everyone will be comfortable to stay where we are,” he said.
The unemployment rate fell in July to 3.5%, but job creations were lower than expected, and those of the previous two months revised downwards.
The Fed last week raised rates for the 11th time since March 2022, after a pause at its previous meeting in mid-June. Its main policy rate is now in a range of 5.25 to 5.50%.
