San Francisco Fed President Mary Daly said she is open to increases of 50 and 75 basis points.
After the Fed minutes signaled that the interest rate hikes might soften in the future, different messages came from Fed members regarding the dose of the increase in September.
St. Louis Fed President James Bullard said he favored a 75 basis point rate hike in September. Speaking to the Wall Street Journal, Bullard, among the most hawkish members of the Fed, said, “We need to act quickly to reach a policy rate that can put a serious downward pressure on inflation.”
Kansas City Fed President Esther George, who was seen as a hawk for many years but opposed the last 75 basis point increase in favor of a lesser rate hike, maintained her dove position.
Although George said that interest rate increases should continue strongly, they should discuss the dose of the rise in September. San Francisco Fed President Mary Daly said she is open to rate hikes of 50 and 75 basis points. According to the median forecasts of Fed members announced in June, the Fed policy rate is expected to be at 3.25-3.50 percent by the end of the year. These estimates will be updated at the meeting in September.
