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The Fed Is ‘Resolute’ on Hiking Interest Rates, Tightening Monetary Policy to Tame Inflation — Gold and Stocks Sink – Economics Bitcoin News

The Fed Is ‘Resolute’ on Hiking Interest Rates, Tightening Monetary Policy to Tame Inflation — Gold and Stocks Sink – Economics Bitcoin News

Several reports detail that U.S. Federal Reserve officials are resolute on tightening monetary policy and increasing the federal funds rate until inflation in America is alleviated. Chicago Fed president Charles Evans explained on Tuesday that the central bank would likely keep up the larger than usual rate hikes until inflation is remedied.

The Fed Is ‘Nowhere Near’ Done When It Comes to Tighter Policy, Central Bank Has Not Seen a ‘Turn in Inflation’

The Federal Reserve is in a predicament as inflation in America is the highest its been since the 1980s. On Tuesday, a report quoting three members of the U.S. central bank indicates that the Fed’s policymakers are still convinced more rate hikes are needed to tame the country’s rising inflation.

San Francisco Fed president Mary Daly explained during a Linkedin interview “we are still resolute and completely united” in getting inflation down. Daly stressed the Fed was “nowhere near” done as far as implementing monetary policy measures and in terms of fighting inflation, she said the central bank still has “a long way to go.”

The Fed Is ‘Resolute’ on Hiking Interest Rates, Tightening Monetary Policy to Tame Inflation — Gold and Stocks Sink
On Tuesday, the president and CEO of the Federal Reserve Bank of San Francisco Mary Daly said: “People are still struggling with the higher prices they’re paying and the rising prices. The number of people who can’t afford this week what they paid for with ease six months ago just means our work is far from done.”

“My modal outlook, or the outlook I think is most likely, is really that we raise interest rates and then we hold them there for a while at whatever level we think is appropriate,” Daly remarked. Cleveland Fed president Loretta Mester’s opinion was similar, as she told the Washington Post (WP): “we have more work to do because we have not seen that turn in inflation.”

The Fed Is ‘Resolute’ on Hiking Interest Rates, Tightening Monetary Policy to Tame Inflation — Gold and Stocks Sink
The president and CEO of the Federal Reserve Bank of Cleveland Loretta Mester told WP: “I don’t believe we’re in a recession Certainly, activity has slowed, and you’re right, the GDP report showed negative growth for two quarters in a row, but you have to actually look at the composition of that growth to discern what parts of the economy are slowing.”

Chicago Fed president Charles Evans shared his opinion this Tuesday as well. Evans explained to reporters that the Fed would likely continue large interest rate increases until inflation is down. While he spoke about larger than usual rate hikes in the 75 bps range, Evans also clarified that a 50…

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