{"id":1840683,"date":"2023-02-09T08:05:34","date_gmt":"2023-02-09T13:05:34","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1840683"},"modified":"2023-02-09T08:06:50","modified_gmt":"2023-02-09T13:06:50","slug":"fed-points-to-ongoing-high-wage-growth-for-additional-rate-hikes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-points-to-ongoing-high-wage-growth-for-additional-rate-hikes\/","title":{"rendered":"Fed Points to Ongoing High Wage Growth for Additional Rate Hikes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><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-points-to-ongoing-high-wage-growth-for-additional-rate-hikes%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=1840683&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-->\n<p>Wednesday&#8217;s Fed meeting was attended by a few officials. <a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/january-jobs-report-labor-market-economy-february-3-2023-125436675.html\" data-ylk=\"slk:continued strength in the job market;cpos:1;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">Continued strength of the job market<\/a> Evidence of inflation pressures persisting will require the Fed to keep raising interest rates for a longer duration and to keep them up.<\/p>\n<p>\u201cThere\u2019s not much evidence in my view that the rate hikes we\u2019ve done so far are having much of an effect on the job market,\u201d Neel Kashkari, Minneapolis Fed President, spoke at a Boston Economic Club town hall. \u201cSo that means we need to do more. How much more, I\u2019m not sure.\u201d<\/p>\n<p>Together with Fed Governor Christopher Waller of New York and Fed President John Williams, Kashkari noted Wednesday that wage inflation is still a concern. \u201cwell above\u201d levels consistent with the Fed\u2019s 2% inflation target, pointing to continued inflation in the services sector, excluding housing.<\/p>\n<p>Kashkari claimed that wage growth of 3% or less would be more consistent to 2% inflation.<\/p>\n<figure class=\"caas-figure\">\n<div>\n<div>\n<div class=\"caas-img-container caas-img-loader noheight\"><img class=\"caas-img caas-lazy has-preview\" alt=\"President of the Federal Reserve Bank on Minneapolis Neel Kashkari speaks during an interview in New York, U.S., March 29, 2019. REUTERS\/Shannon Stapleton\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/2db793f0-086b-11ea-af23-e0c8b1bd1434\" src   style=\"display:none\"><noscript><img decoding=\"async\" alt=\"President of the Federal Reserve Bank on Minneapolis Neel Kashkari speaks during an interview in New York, U.S., March 29, 2019. REUTERS\/Shannon Stapleton\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/2db793f0-086b-11ea-af23-e0c8b1bd1434\" class=\"caas-img\" \/><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Neel Kazhkari, President, Federal Reserve Bank of Minneapolis speaks during an interview in New York City, U.S.A., March 29, 2019. REUTERS\/Shannon Stapleton<\/figcaption><\/p>\n<\/figure>\n<p>The comments come after a much stronger-than-expected report Friday<a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/january-jobs-report-labor-market-economy-february-3-2023-125436675.html\" data-ylk=\"slk:showed 517,000 jobs were created in December;cpos:2;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\"> Figures show that 517,000 jobs were created during December<\/a>. The annual wage growth was 4.4% in comparison to November&#8217;s 5.1%.<\/p>\n<p>Waller claimed that the recent data was moving in a positive direction, but added that he is still watching for slower growth.<\/p>\n<p>\u201cWe don\u2019t want excessive wage increases to be a potential source of higher inflation in the future,\u201d He said.<\/p>\n<p>While some, including Fed Chair Jerome Powell (who suggested it), disagree with this suggestion <a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/fed-chair-powell-says-disinflationary-process-has-begun-in-the-us-economy-175915718.html\" data-ylk=\"slk:think inflation will fall significantly this year;cpos:3;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">Inflation expected to fall this year<\/a>, Waller said he\u2019s not seeing signs of that.<\/p>\n<p>\u201cThat would be a welcome outcome,\u201d Waller spoke at the Arkansas State University Agribusiness Conference. \u201cBut I\u2019m not seeing signals of this quick decline in the economic data, and I am prepared for a longer fight to get inflation down to our target.\u201d<\/p>\n<p>The key \u2014 said the New York Fed\u2019s Williams \u2014 is to raise rates to levels that will restrict growth and keep them there for a few years to continue its restraint.<\/p>\n<p>\u201cTo me, the important thing is we need a sufficiently restrictive stance and we need to attain a sufficiently restrictive stance of policy,\u201d Williams spoke at an Wall Street Journal event. \u201cWe\u2019re going to need to maintain that for a few years to make sure we get inflation to 2%, and then eventually over time we\u2019ll get interest rates presumably back to more normal levels.\u201d<\/p>\n<p>He pointed out that the rates at this time are not restrictive enough.<\/p>\n<p>Williams indicated that forecasts by Fed officials to raise the federal funds rates this year to between 5.5% and 5.25% were still a good guide as to where interest rates will go this year. The Fed raised its benchmark rate from 4.50% to 4.755% last week after the Fed&#8217;s most recent hike. It&#8217;s the highest level in a decade.<\/p>\n<p>Williams said that future rate rises will be a quarter of a percentage point \u201cseems like the right size.\u201d However, he stated that any further increases would be determined by incoming data.<\/p>\n<p>&#8220;If financial conditions loosen too much, we would have to go higher on rates,&#8221; He said.<\/p>\n<p>Williams stated that the Fed will not be able to reduce rates because the market tried to outrun it on pricing in. He said that the Fed would only need to respond to lower levels or weaker inflation in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wednesday&#8217;s Fed meeting was attended by a few officials. Continued strength of the job market Evidence of inflation pressures persisting will require the Fed to keep raising interest rates for a longer duration and to keep them up. \u201cThere\u2019s not much evidence in my view that the rate hikes we\u2019ve done so far are having &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1840686,"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":[547],"tags":[7631,7498,10597,6367,4085,6366,4562],"class_list":["post-1840683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-additional","tag-fed","tag-growth","tag-hikes","tag-ongoing","tag-rate","tag-wage"],"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\/1840683","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=1840683"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1840683\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1840686"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1840683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1840683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1840683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}