Fed’s Daly, Harker Join Calls for Rate Liftoff as Early as March
“I definitely see rate increases coming, as early as March even, because it really is clear that prices have been uncomfortably high,” Daly told PBS.
“I definitely see rate increases coming, as early as March even, because it really is clear that prices have been uncomfortably high,” Daly told PBS.
Two of the biggest drivers of price spikes over 2021 have been in food and energy. White House has focused on both of those sectors for inflation.
Fed Reserve is turning its attention to taming high inflation, but it is going to take more than just higher borrowing costs to curb price increases.
Cleveland Fed Pres. Loretta Mester, who votes on policy this year, would support raising Fed funds rate in March if current economic conditions hold.
“We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” Powell said.
Selloff that raced through the Treasury market this past week has investors bracing for further losses that would push benchmark 10yr yield toward 2%.
Economists from both sides of the political spectrum argued that the Fed is behind the curve in the battle to contain an outburst of inflation.