Cleveland Federal Reserve President Mester: Possibility of Interest Rate Increase Next FOMC Meeting

Cleveland Federal Reserve President Mester said on the 3rd that if the current economic situation continues, he will not rule out raising interest rates at the next Federal Open Market Committee (FOMC) meeting. Photographed in July 2019 (2023 Reuters/Marc Jones/File Photo)

[ニューヨーク ３日 ロイター] – Cleveland Federal Reserve President Mester said on the 3rd that if the current economic situation continues, he will not rule out raising interest rates at the next Federal Open Market Committee (FOMC) meeting.

“If the economy is in the same position as the last time we meet, I would raise rates even further,” Mester said in a conference call with reporters. Mester does not have the right to vote at this year’s Federal Open Market Committee (FOMC).

Regarding the policy outlook for the rest of the year, he said, “I can’t say at this point exactly what will happen at the November and December meetings,” adding that he would probably support further interest rate hikes, adding, “I don’t know exactly how the economy will develop.” We need to keep an eye on it.”

At the same time, it notes that policy rates are likely at or near their peak, but given easing but still high inflation pressures, another rate hike is justified. mentioned. “The question is, how long do we need to continue restrictive monetary policy to be confident that the inflation rate will fall to 2%?” He declined to say explicitly about that period or when he would consider lowering interest rates. We must maintain a policy of

The Fed said it expects to reach its 2% inflation target by the end of 2025. He also said he did not expect a rate cut anytime soon.

Furthermore, the sharp rise in U.S. bond yields will affect Fed officials’ policy decisions.

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2023-10-03 16:22:00
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