After Fed Chairman Jerome Powell pointed to a 50 basis point increase in interest rates, it is seen that Fed officials also support interest rate hikes.
Fed officials also support Fed Chairman Jerome Powell’s call to raise interest rates to combat high inflation.
Cleveland Fed President Loretta Mester also supported a faster path in increases. Mester said that the 50 basis point increase should be evaluated and that he is in favor of increasing the interest rate to 2.5 percent by the end of the year.
St. Louis Fed President James Bullard said the Fed should act aggressively to keep inflation under control. Bullard opposed the 25 basis point rate hike decision last week and supported the 50 basis point rate hike. “We have a very low interest rate and a large balance sheet, so we need to pursue an aggressive policy to stop the upward inflation pressures. The 50 basis point increase should definitely be evaluated,” he said.
At the Federal Open Market Committee (FOMC) meeting, Fed Chairman Jerome Powell said that he could raise interest rates by 50 basis points if necessary.