March 21, 2023

The Queens County Citizen

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According to an official | The Fed can raise rates by half a point if necessary

According to an official |  The Fed can raise rates by half a point if necessary

(New York) The American Central Bank (Fed) has not ruled out raising its rates by half a percentage point if inflation is high, its official Rafael Bostik has said. Financial times.

Posted at 10:59 yesterday

The company announced this week that it intends to raise key rates in March on job improvements and the persistence of high inflation.

Its chairman, Jerome Powell, declined to elaborate on the size of the planned increase, saying only that the Fed was “flexible” on the issue. It usually raises rates by a quarter of a percentage point.

In an interview granted Friday and published Saturday evening Financial timesRafael Bostick, chairman of the Atlanta branch of the Federal Reserve, stressed that “all options (all options) are on the table at every meeting”.

He still expects a three-quarter point increase by the end of the year.

But “things need to move 50 basis points or if the data suggest [serait] Appropriate, then I can think about it, ”he said.

He emphasized that he was “comfortable” with the idea of ​​making a decision “at each meeting” so that there would be a rate increase at each of the remaining seven meetings by the end of the year. Year.

Key Fed rates were cut from 0% to 0.25% in March 2020 in an effort to mitigate the shock to the economy from the COVID-19 pandemic.

As growth picks up again, the Fed’s priority now is to reduce inflation, especially raising rates.