An increase in the Federal Reserve interest rate by 50 basis points may now be “very likely”, said today the president of the Chicago Fed, Charles Evans, as broadcast by foreign agencies.
The Fed official had said in previous statements that he was open to considering a 50 bp increase. as part of the strategy to drive Fed interest rates to a neutral position until the next meeting.
Evans has stated that he believes a neutral stance [της νομισματικής πολιτικής] is in the range between 2.25% – 2.5%.
In a statement today, Evans said it would not make much difference if the Fed stepped up to the point of neutrality by December. “The next meeting is part of how we get there and how fast we get there. The 50m is something to consider, maybe even more likely, if we want to get to the neutral point by December. “.
Last month, the Fed took the first step to tackling the highest inflation in 40 years, raising its interest rate by 25 basis points. at 0.25% – 0.5%.
Source: Capital
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