The monetary policy of the US Federal Reserve (Fed) it is not yet in a range deemed restrictive enough to reduce inflation, St. Louis Federal Reserve President James Bullard said on Thursday, Reuters reported.
More information
“The Fed’s rate hikes to date have had only a limited effect on observed inflation.”
Even moderate assumptions about the state of monetary policy justify further rate hikes.”
“The monetary rule would set a lower bound on tightening at around 5%, versus the Fed’s current target rate range of 3.75% to 4%.”
“The range of tightening policy estimates could be lower if inflation falls, markets expect disinflation in 2023.”
“Caution is warranted given that the markets, the Fed, have been expecting inflation to fall for over a year now.”
Market Reaction
The dollar index continues to rise in the American session and was last seen gaining 0.8% on the day, standing at 107.12.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
