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Fed officials warn of additional interest rate hikes to fight inflation
Federal Reserve moving ‘much too quickly’ on raising rates: Mark Grant
Colliers Securities Chief Global Strategist Mark Grant assesses the Federal Reserve’s most recent rate hikes and discusses market strategies.
A chorus of Federal Reserve officials are laying the need for further interest rate hikes in the coming months as they wrestle to bring the highest inflation in decades under control, even if it means slowing economic growth and raising unemployment.
Several policymakers this week endorsed the central bank's aggressive trajectory, disclosed after its two-day meeting last week. The outline shows the benchmark federal funds rate climbing to 4.4% by the end of the year. That indicates at least one more three-quarter percentage point increase is on the table either in November or December.
"This is a serious problem, and we need to be sure we respond to it appropriately," St. Louis Fed President James Bullard said during an economic conference in London on Tuesday. "We have increased the policy rate substantially this year and more increases are indicated."
Ballard's sentiment was echoed by Chicago Fed President Charles Evans and Minneapolis Fed President Neel Kashkari, who said the central bank needs to deliver on its promised rate increases and hold rates there until inflationary pressures start to ease.
FED RAISES INTEREST RATES BY 75 BASIS POINTS IN ANOTHER HISTORIC MOVE TO TACKLE INFLATION
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