{"id":1615338,"date":"2022-08-18T18:08:34","date_gmt":"2022-08-18T22:08:34","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1615338"},"modified":"2022-08-18T18:08:50","modified_gmt":"2022-08-18T22:08:50","slug":"fed-united-on-need-for-higher-rates-divided-over-how-high","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-united-on-need-for-higher-rates-divided-over-how-high\/","title":{"rendered":"Fed united on need for higher rates, divided over how high"},"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\">22<\/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-united-on-need-for-higher-rates-divided-over-how-high%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=1615338&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>By Ann Saphir and Howard Schneider<\/p>\n<p>(Reuters) -The Federal Reserve needs to keep raising borrowing costs to bring high inflation under control, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them.<\/p>\n<p>St. Louis Fed President James Bullard, who was among the central bank\u2019s earliest advocates last year of a more muscular response to fast-building price pressures, said that given the strength of the economy he is currently leaning toward supporting a third straight 75-basis-point interest rate hike in September.<\/p>\n<p>\u201cI don\u2019t really see why you want to drag out interest rate increases into next year,\u201d Bullard told the Wall Street Journal, saying he would like to get the Fed\u2019s benchmark overnight interest rate to a target range of 3.75% to 4.00% by the end of this year. The Fed\u2019s policy rate is currently 2.25%-2.50%.<\/p>\n<p>Earlier on Thursday, San Francisco Fed President Mary Daly said hiking rates by 50 or 75 basis points at the Fed\u2019s next policy meeting on Sept. 20-21 would be a \u201creasonable\u201d way to get short-term borrowing costs to \u201ca little bit above\u201d 3% by the end of this year, and on their way to a little bit higher in 2023. <\/p>\n<p>The exact pace would depend on employment data, which has shown brisk growth in recent months, and inflation, Daly told CNN International. Inflation, by the Fed\u2019s preferred measure, is running at more than three times the central bank\u2019s 2% target.<\/p>\n<p>With the global economic slowdown acting as a headwind on U.S. growth, she said \u201cwe have to take that into consideration as we ensure that we don\u2019t overdo policy.\u201d<\/p>\n<p>Fresh data on Thursday showing a dip in the number of Americans filing for unemployment benefits last week added to evidence that, save for the fast-cooling housing market, the economy is holding up despite the steepest round of Fed rate hikes since the 1980s.<\/p>\n<p>\u2018DEFINITELY PREMATURE\u2019<\/p>\n<p>Investors may get a better read on the Fed\u2019s likely actions in coming months next Friday, Aug. 26, when Fed Chair Jerome Powell gives a highly anticipated speech on the economic outlook at the annual global central bankers\u2019 conference in Jackson Hole, Wyoming. <\/p>\n<p>Powell last month held the door open to another \u201cunusually large\u201d rate hike at the Fed\u2019s next meeting, but also said \u201cit likely will become appropriate to slow the pace of increases\u201d to give policymakers time to take stock of how higher borrowing costs are affecting the economy.<\/p>\n<p>Fed officials\u2019 remarks Thursday suggest an emerging split https:\/\/graphics.reuters.com\/USA-ECONOMY\/FED\/lgpdwawwzvo in the central bank between those who want to push rates higher quickly, and those who are more cautious because of potential damage to the job market and the risk of a rise in the U.S. unemployment rate, now at 3.5%. <\/p>\n<p>But both Bullard and Daly said they felt that once rates get to a certain level, the Fed will not quickly reverse course. Bullard said market expectations of rate cuts were \u201cdefinitely premature.\u201d Daly said she supported a \u201craise-and-hold\u201d strategy. <\/p>\n<p>\u201cThe worst thing you can have as a business or a consumer is to have rates go up and then come rapidly down\u2026 it just causes a lot of caution and uncertainty,\u201d Daly said. \u201cI do think we want to not have this idea that we\u2019ll have this large hump-shaped rate path where we\u2019ll ratchet up really rapidly this year and then cut aggressively next year \u2013 that\u2019s not what\u2019s on my mind.\u201d<\/p>\n<p>Trading in futures contracts tied to the Fed\u2019s policy rate suggested investors see that rate rising to a range of 3.50%-3.75% by March of next year, but then starting to fall a few months later.<\/p>\n<p>Speaking at a separate event, Kansas City Fed President Esther George said she and her colleagues would continue to debate the question of how fast to raise rates, but that they would not stop tightening policy until they are \u201ccompletely convinced\u201d that inflation is coming down.<\/p>\n<p>The recent easing of U.S. financial conditions, including a surge in stock prices, may have been based on an overly optimistic sense that inflation was peaking and the pace of  interest rate increases was likely to slow, she said.<\/p>\n<p>Minneapolis Fed President Neel Kashkari, the most hawkish of Fed policymakers, said the central bank needs to \u201curgently\u201d bring down inflation. \u201cThe question right now is, can we bring inflation down without triggering a recession?\u201d he said at an event in Wayzata, Minnesota. \u201cAnd my answer to that question is, I don\u2019t know.\u201d<\/p>\n<p> (Reporting by Ann Saphir and Howard Schneider; Additional reporting by Akanksha Khushi in Bengaluru; Editing by Paul Simao and Rosalba O\u2019Brien)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2739205\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/tagreuters.com2022binary_LYNXMPEI7H0XA-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI7H0XA-VIEWIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2739207\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/tagreuters.com2022binary_LYNXMPEI7H0XB-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI7H0XB-VIEWIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2739208\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/tagreuters.com2022binary_LYNXMPEI7H0M4-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI7H0M4-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Ann Saphir and Howard Schneider (Reuters) -The Federal Reserve needs to keep raising borrowing costs to bring high inflation under control, a string of U.S. central bank officials said<\/p>\n","protected":false},"author":66,"featured_media":2315279,"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-1615338","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\/1615338","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\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1615338"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1615338\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1615338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1615338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1615338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}