[Archyde.com]–Mester, the governor of the Cleveland District Fed, slowed the pace of tightening from a 50 basis point (bp) rate hike that Federal Reserve officials said in June and July. He said he needed convincing evidence that inflation had peaked.
“If we can’t be sure, we’ll support a 50bp rate hike at the September meeting,” Mester told CNBC that inflation had slowed.
At the same time, he said, “We will start by determining whether we need an additional rate hike of 50bp and whether we have confirmed solid evidence that inflation is on a slowing trend, and the rate hike may be 25bp.” I don’t think it should be stopped. “
Governor Mester said that he “has not confirmed a hurricane” for the US economy, but China’s demand not only for raising US interest rates, but also for the slowdown of the European economy due to Russia’s invasion of Ukraine and the lockdown of new corona measures. He warned that “it is necessary to recognize that the risk of recession is increasing” in light of the decline and the impact on the supply chain.
Jamie Dimon, CEO of JPMorgan Chase, U.S. financial giant, said this week that a “hurricane” is imminent in the U.S. economy, and the FRB needs to take strong steps to avoid a recession. Showed the recognition that there is.
He also said that he would continue to raise rates at the Federal Open Market Committee (FOMC) several times in the future to verify the balance between supply and demand, and that the Fed could slow down growth without causing serious problems. There is. “