Philadelphia Fed's Anna Paulson Signals Further 'Modest' Rate Increases May Be Needed
The regional Fed policymaker said additional interest rate hikes may be required to bring inflation back down to target.
Anna Paulson, president of the Federal Reserve Bank of Philadelphia, said she and her colleagues on the Federal Open Market Committee may need to raise interest rates further in order to bring inflation back down to the central bank's target.
Paulson characterized the likely path ahead for monetary policy as involving "modest" rate moves rather than large, aggressive increases, suggesting a gradual approach to further tightening if it proves necessary.
Her comments add to the range of views expressed by regional Federal Reserve presidents as the central bank continues to weigh the appropriate pace of policy in the face of persistent inflation pressures.
As a voting or non-voting member of the FOMC depending on the year, regional Fed presidents like Paulson help shape the debate over interest rate decisions, even though the committee as a whole sets official policy.
Further details on the specific timing or magnitude of any future rate moves were not disclosed in the available remarks.
Sources
- Philadelphia Fed's Anna Paulson says 'modest' rate moves likely ahead to tame inflation — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
Related articles
Fed's Williams Says Another Rate Hike by Year-End Is 'Reasonable' to Expect
New York Federal Reserve President John Williams made the remarks at the London Macro Policy Forum.
Rising Treasury yields signal growing strain on an inflation-prone US economy
Elevated yields on US government debt are complicating both Federal Reserve policy decisions and the Treasury's own financing plans.
30-Year Treasury Yield Hits Highest Level Since 2004 Amid Bond Market Selloff
U.S. Treasury yields extended their climb, with the 30-year yield reaching its highest level in about two decades.
UK Interest Rate Rise Increasingly Likely as Energy Prices Fuel Inflation Fears
Bank of England deputy governor Clare Lombardelli warns that persistent energy-driven inflation could force rates higher.
Bank of England's Lombardelli Warns Rates Could Rise if Energy Prices Stay High
Deputy Governor Clare Lombardelli said persistent high energy prices from the Middle East conflict could push UK inflation higher and increase the likelihood of tighter monetary policy.
Australian diesel prices could surge past $3 a litre amid US export cut concerns
Fuel costs in Australia have climbed to their highest levels since early April, with analysts warning of further increases if the US moves to cut diesel exports.
Comments
Loading comments…