Federal Reserve officials are guarding the US interest rate hike this month – the economy

Chairman Federal Reserve (Fed) Inside Atlanta, Raphael Postick American BC argued that it had abandoned the current position and raised interest rates to a “reasonable” level. At this month’s meeting, the President supported a 0.25 point increase in the Fed’s rate, but opened up the possibility of a 0.5 point increase if inflation in the United States is “as high” as it is now.

During the lecture for students Harvard University Yesterday, Postik stressed the need for the central bank to have “energy” about its purpose of keeping prices in check. According to him, all meetings Federal Open Market Committee (FOMC) may consider a 0.5 percentage point increase in interest rates by 2022.

While broad-based inflationary pressures hit short-term expectations, long-term expectations – five to 10 years – did not “move significantly,” he said.

High demand

Postik, who did not vote in the central bank’s monetary decision this year, explained that the current price level in the U.S. market is driven by factors such as high consumer demand and supply chain issues affecting capacity. The central bank’s “great accommodation” position during the low labor supply and corona virus crisis.

Loretta Master, The head of the Cleveland Fed, argued that interest rates should be raised this month. He also said that a “higher series” was needed after that.

Meister said the central bank’s task now is to “reconsider policy” in the context of strong performance and labor markets and high inflation, with the right to vote on monetary policy decisions.