NASHVILLE, Tenn. — The Fed will continue to raise interest rates multiple times this year, but at a slower pace and the economy is heading for a recession, said former Federal Reserve Vice Chairman Roger Ferguson.
Further tightening is expected, Ferguson said Tuesday at the annual Mortgage Bankers Association conference in Nashville, Tennessee.
Ferguson sees rates at 75 – hike at Nov. 1-2 policy meeting, then 50 basis points in December, possibly 25 early next year basis point.
“I worry if I’m wrong, it’s because I’m underestimating what they still need to do,” he added.
“Ferguson said. “Not optimistic, but [I’m] here to be honest with you.”
Ferguson also said he expects the 10-year Treasury yield to rise to 5%, and only very slowly back down from this level. 10-year TMUBMUSD10Y,
If “the next CPI report is really high,” there may be Fed officials who want to push rates even higher.
Any thoughts on the real estate market? Write to MarketWatch reporter Aarthi Swaminathan at [email protected]
