The Governor of the Federal Reserve, Christopher Waller, said on Friday that the latest data shows that the Fed has not made much progress on its inflation target. and added that rates need to go upas reported by Reuters.
“Scope of further hikes depends on incoming data and credit tightening“.
“It is not yet known how the SVB bankruptcy and banking stress will affect credit conditions in general.”
“Monetary policy will need to remain tight for a substantial period, and longer than markets anticipate“.
“The data for the first quarter of 2023 continue to surprise with higher growth and job creation.”
“Significant credit tightening could offset the need for rate hikes, but judgment is difficult in real time.”
“Events so far validate the rate hike decision at the last meetingbut they continue to look at the data even more closely than usual.”
“The liquidity measures taken after the bankruptcy of SVB seem to have succeeded in stabilizing the banking system.”
Source: Fx Street
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