{"id":1554809,"date":"2022-07-14T16:50:02","date_gmt":"2022-07-14T20:50:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1554809"},"modified":"2022-07-14T16:50:20","modified_gmt":"2022-07-14T20:50:20","slug":"federal-reserve-officials-nod-toward-massive-interest-rate-hike-after-bad-inflation-news","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-officials-nod-toward-massive-interest-rate-hike-after-bad-inflation-news\/","title":{"rendered":"Federal Reserve Officials Nod Toward Massive Interest Rate Hike After Bad Inflation News"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-reserve-officials-nod-toward-massive-interest-rate-hike-after-bad-inflation-news%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1554809&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><a href=\"http:\/\/dailywire.com\/topic\/federal-reserve\">Federal Reserve<\/a> Governor Christopher Waller said on Thursday that he would support an <a href=\"https:\/\/www.dailywire.com\/topic\/interest-rates\">interest rate<\/a> hike of 0.75% or higher in reaction to high <a href=\"http:\/\/dailywire.com\/topic\/inflation\">inflation<\/a>.<\/p>\n<p>The remarks came after two reports released this week by the U.S. Bureau of Labor Statistics showed that the Consumer Price Index (CPI) <a href=\"https:\/\/www.dailywire.com\/news\/inflation-soars-to-new-high-of-9-1\">rose<\/a> 9.1% between June 2021 and June 2022, while the Producer Price Index (PPI) <a href=\"https:\/\/www.dailywire.com\/news\/producer-price-index-hits-11-3-in-another-dismal-inflation-reading\">rose<\/a> 11.3% during the same period.<\/p>\n<p>In a <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/speech\/waller20220714a.htm\">speech<\/a> at the Rocky Mountain Economic Summit in Idaho, Waller indicated that he supports another 0.75% rate hike, matching an <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades\">identical increase<\/a> in June that marked the largest increment since 1994. He could also support a larger rate hike if other data show strong economic activity.<\/p>\n<p>\u201cWe have important data releases on retail sales and housing coming in before the July meeting,\u201d Waller said. \u201cIf that data comes in materially stronger than expected it would make me lean towards a larger hike at the July meeting to the extent it shows demand is not slowing down fast enough to get inflation down.\u201d<\/p>\n<p>Rate hikes are meant to discourage inflation, but they carry the side effect of increasing borrowing costs and thereby dampening economic activity. Yet Waller noted that the labor market is currently \u201cvery strong\u201d with an unemployment rate \u201cbelow the median of policymakers\u2019 expected longer-run level\u201d \u2014 a reality that allows the Fed to increase rates while likely avoiding severe economic consequences.<\/p>\n<p>Waller said he will be \u201clooking for signs\u201d that inflation is moving toward policymakers\u2019 2% long-term target \u201con a sustained basis.\u201d He also expressed concern that American consumers and businesses will come to anticipate higher inflation in the long run \u2014 an expectation that hinges upon \u201cwhether they believe the Fed is sufficiently committed to its inflation target.\u201d<\/p>\n<p>Indeed, the Federal Reserve Bank of New York\u2019s most recent <a href=\"https:\/\/www.newyorkfed.org\/newsevents\/news\/research\/2022\/20220711\">Survey of Consumer Expectations<\/a> revealed that Americans <a href=\"https:\/\/www.dailywire.com\/news\/americans-inflation-forecasts-hit-another-record-high\">foresee<\/a> one-year-ahead inflation hitting 6.8% \u2014 an increase from 6.6% in May and the highest level since the survey began in 2013. However, inflation expectations for the next three years fell from 3.9% to 3.6%, while five-year-ahead forecasts declined from 2.9% to 2.8%.<\/p>\n<p>Other key officials are nodding to another significant rate hike. Federal Reserve Bank of St. Louis President James Bullard \u2014 who serves alongside Waller as one of the 12 members of the Federal Open Market Committee \u2014 <a href=\"https:\/\/www.wsj.com\/articles\/feds-christopher-waller-supports-another-0-75-point-rate-rise-in-july-11657216604\">said<\/a> to reporters that \u201cit would make a lot of sense\u201d to choose a 0.75% rate hike such that rates increase to around 3.5% by the end of this year.<\/p>\n<p>Also on Thursday, Treasury Secretary and former Federal Reserve Chair Janet Yellen <a href=\"https:\/\/www.dailywire.com\/news\/janet-yellen-addresses-unacceptably-high-inflation-tells-what-biden-administration-will-do-next\">affirmed<\/a> that she would endorse any actions taken by monetary policymakers to quell rising prices. \u201cWe\u2019re first and foremost supportive of the Fed\u2019s efforts; what they deem to be necessary to get inflation under control,\u201d she remarked.<\/p>\n<p>Meanwhile, President Joe Biden <a href=\"https:\/\/www.dailywire.com\/news\/biden-dismisses-record-high-inflation-news-as-out-of-date\">asserted<\/a> on Wednesday that the most recent inflation news is \u201cunacceptably high,\u201d yet outdated. \u201cEnergy alone comprised nearly half of the monthly increase in inflation. Today\u2019s data does not reflect the full impact of nearly 30 days of decreases in gas prices,\u201d he said in a <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2022\/07\/13\/president-biden-statement-on-cpi-inflation-in-june\/\">statement<\/a>, noting that gas prices have fallen by $0.40 since June. \u201cThose savings are providing important breathing room for American families.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Governor Christopher Waller said on Thursday that he would support an interest rate hike of 0.75% or higher in reaction to high inflation. The remarks came after two reports released this week by the U.S. Bureau of Labor Statistics showed that the Consumer Price Index (CPI) rose 9.1% between June 2021 and June &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1524146,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1554809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1554809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1554809"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1554809\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1524146"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1554809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1554809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1554809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}