Friday, March 1, 2024
HomeBusinessDaly expects Fed to hike rates above 5%, but unclear how far

Daly expects Fed to hike rates above 5%, but unclear how far

Daly Sees Fed Raising Rates Above 5%, But How Far Is Unclear & Copy Bloomberg. Mary Daly

(Bloomberg) — Federal San Francisco Reserve Bank President Mary Daly said she expects the central bank to raise rates above 5% before pausing, but the final level is unclear and will depend on upcoming inflation data.

As for the next meeting of the Federal Reserve at the end of this month, the central bank will either raise interest rates by 50 basis points for the second time in a row, or slow down the rate hike to 25 basis points, Daly Weekly One said in a report the Wall Street Journal’s live-streamed interview.

There will be no vote on interest rates this year. She is strong and borrowing costs are likely to remain high for some time to bring inflation down to the central bank’s 2% target.

Daly said last month that she thinks rates will remain capped for longer than the market expects, which has already priced in rate cuts for this year. She said keeping the federal funds rate at its highest level for 11 months was a “reasonable starting point.”

Fed officials meeting on Jan. 31 and Feb. 1 are expected to either raise rates by another 50 basis points or slow the pace further to 25 percentage points, Although traders think the latter is more likely. A report on Friday showed hiring in the U.S. labor market remained strong in December, while wage growth slowed.

©2023 Bloomberg LP



Please enter your comment!
Please enter your name here


Featured NEWS