Aug 25 – Ahead of the much-anticipated Jackson Hole Fed conference, a top US monetary official is leaving the next rate hike open. Atlanta Fed District Chairman Raphael Bostic told The Wall Street Journal he was undecided on whether there should be a half-point hike or a 0.75 percentage point hike in September. He pointed out that it will still be a few weeks before the interest rate decision on September 21st. In addition, it is still too early to say that inflation has peaked.
The Federal Reserve (Fed) has steadily increased the monetary policy level since the interest rate turnaround in March and has now raised it to a range of 2.25 to 2.50 percent. The stock market is currently puzzling as to whether the Fed will take another very sharp step up in September or whether interest rate reins will be tightened a little less.
Investors are hoping for more information about the further course of monetary policy from the speech by Fed boss Jerome Powell in Jackson Hole on Friday, the second day of the conference. According to experts, it should dampen expectations that the US Federal Reserve will change course next year and switch to interest rate cuts. “The question might be how the central banks, especially the Federal Reserve, want to bring the inflation rate to its knees without sending the economy into a major recession,” said expert Christian Henke from broker IG.
Fed banker leaves rate hike size open – all eyes on Jackson Hole
Those: Archyde.com
Cover photo: Symbolic photo
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