{"id":1603215,"date":"2022-08-12T12:01:42","date_gmt":"2022-08-12T16:01:42","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1603215"},"modified":"2022-08-12T12:01:48","modified_gmt":"2022-08-12T16:01:48","slug":"fed-president-says-interest-hikes-must-continue-until-inflation-holds-at-2","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-president-says-interest-hikes-must-continue-until-inflation-holds-at-2\/","title":{"rendered":"Fed President Says Interest Hikes Must Continue Until Inflation Holds at 2%"},"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\">24<\/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%2Ffed-president-says-interest-hikes-must-continue-until-inflation-holds-at-2%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=1603215&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--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<div class=\"TopBanner-container\" data-top-banner-placeholder=\"true\"><\/div>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>Richmond Fed President Thomas Barkin said Friday that more interest rate increases will be needed to tamp down inflation.<\/li>\n<li>Barkin said he wants to see inflation running around 2% &#8220;for a period of time.&#8221; The current level is far from that goal.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"group\">\n<p>Despite positive inflation data this week, Richmond Federal Reserve President Thomas Barkin said Friday that more interest rate increases will be needed to tamp down price pressures.<\/p>\n<p>Releases this week showing that consumer and wholesale <a href=\"https:\/\/www.cnbc.com\/2022\/08\/10\/the-easing-of-inflation-pressures-is-giving-the-economy-some-breathing-room-for-now.html\">price increases softened<\/a> in July were &#8220;very welcome,&#8221; Barkin told CNBC&#8217;s &#8220;<a href=\"https:\/\/www.cnbc.com\/squawk-on-the-street\/\">Squawk on the Street<\/a>&#8221; in a live interview.<\/p>\n<p>&#8220;So we&#8217;re happy to see inflation start to move down,&#8221; he added. But he noted that, &#8220;I&#8217;d like to see a period of sustained inflation under control, and until we do that I think we&#8217;re just going to have to continue to move rates into restrictive territory.&#8221;<\/p>\n<p>Headline <a href=\"https:\/\/www.cnbc.com\/2022\/08\/10\/consumer-prices-rose-8point5percent-in-july-less-than-expected-as-inflation-pressures-ease-a-bit.html\">consumer prices were flat in July<\/a> while <a href=\"https:\/\/www.cnbc.com\/2022\/08\/11\/producer-price-index-july-2022-.html\">producer prices declined 0.5%<\/a>, according to the Bureau of Labor Statistics.<\/p>\n<p>However, that was just one-month&#8217;s data: CPI still was up 8.5% on a year-over-year basis, and the producer price index climbed 9.8%. Both numbers are still far above the Fed&#8217;s 2% long-run inflation objective, so Barkin said the central bank needs to keep pushing forward until it achieves its goal.<\/p>\n<p>&#8220;You&#8217;d like to see inflation running at our target, which is 2% at the PCE, and I&#8217;d like to see it running at our target for a period of time,&#8221; he said. The Fed uses as its preferred gauge the personal consumption expenditures price index; June <a href=\"https:\/\/www.cnbc.com\/2022\/07\/29\/inflation-figure-that-the-fed-follows-closely-hits-highest-level-since-january-1982.html\">headline PCE ran at a 6.8% annual rate<\/a> while core excluding food and energy was at 4.8%.<\/p>\n<p>Barkin&#8217;s comments reflect those of <a href=\"https:\/\/www.cnbc.com\/2022\/08\/06\/fed-governor-bowman-sees-similarly-sized-rate-hikes-ahead-after-three-quarter-point-moves.html\">most Fed officials<\/a> who have spoken recently about rates.<\/p>\n<p>The central bank has <a href=\"https:\/\/www.cnbc.com\/2022\/07\/27\/fed-decision-july-2022-.html\">hiked its benchmark borrowing rate 0.75 percentage point<\/a> at each of its last two meetings. Markets are divided over whether the Fed will increase by three-quarters of a point in September or scale down to half a point, with traders tilting slightly toward the latter, according to CME Group data Friday morning.<\/p>\n<p>Whichever is the case, Barkin said acting aggressively now is important. He said his constituents are deeply concerned about inflation and want action from the Fed.<\/p>\n<p>&#8220;Consumers really dislike inflation, and one message that I get loud and clear as I wander around my district is, &#8216;we don&#8217;t like inflation,'&#8221; he said.<\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"denied:data:image\/svg+xml;base64,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\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Richmond Fed President Thomas Barkin said Friday that more interest rate increases will be needed to tamp down inflation. Barkin<\/p>\n","protected":false},"author":1,"featured_media":1888791,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1603215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1603215","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1603215"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1603215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1888791"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1603215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1603215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1603215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}