The Fed’s next move may not be a cut as inflation and gas prices squeeze consumers
AP News
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A top Federal Reserve official said Monday that an interest rate hike could be appropriate if inflation remains persistently above the central bank’s 2% target, the latest sign that some policymakers are moving away from a bias toward reducing borrowing costs.
The comments by Beth Hammack, president of the Federal Reserve Bank of Cleveland, suggest a growing concern among at least some policymakers that inflation, which was elevated before the Iran war, may require rate hikes to tame further.
Rate increases by the Fed would be a sharp shift from late last year, when the central bank cut its key rate three times.
U.S. services sector inflation spikes
- U.S. Services Sector Faced Heightened Inflation in March Wall Street Journal —
- Key Fed official sees possible rate hike amid higher gas prices, inflation concerns The Independent —
- Top Fed official sees potential rate hike amid higher gas prices, inflation concerns PBS —
- Top Fed Official Raises Prospect of Rate Hike Amid Iran War Newsweek —
- US Truck Rates at Highest Since 2022 Add to Inflation Pressures Bloomberg —