The US Federal Reserve to continue raising interest rates to reduce inflation
Two officials of the US Federal Reserve, said that interest rates must continue to rise, with one of them calling for the need to continue moving at a gradual pace.
According to Bloomberg, Friday, Thomas Parkin, head of the Richmond branch of the council, told reporters on Friday, in Rosslyn, Virginia: “I prefer the 25 basis point path… It gives us flexibility to respond” to data as soon as it arrives, adding that he supported the move at the latest meeting to set monetary policy.
Speaking at a separate event in Nashville, Tennessee, Governor Michael Bowman said that “we have to keep raising the federal funds rate until we start to see a lot of progress” on reducing inflation.
The two US governors are the latest policymakers to warn that the Fed is far from done with its most restrictive monetary campaign in a generation, following remarks by colleagues who warned interest rates may need to rise more than previously thought.