The US Federal Reserve (Fed) will have to start raising interest rates from their current level close to zero in March and will probably need to raise interest rates at least three times this year to contain inflation, its president said on Thursday. Philadelphia Fed, Patrick Harker.
“My prediction is that we will have a 25 basis point increase in March, unless there are data changes,” Harker told a digital event hosted by the Philadelphia Business Journal.
“Based on what I know today, I would be in favor of that,” Harker said as the central bank prepares to tighten its monetary policy further.
He added that he is currently forecasting three rate hikes of 25 basis points this year and could be convinced of a fourth if inflation is not brought under control.
Investors see an 83% chance that the Fed will raise the interest rate, which is still near zero, at its two-day meeting on March 15 and 16, according to CME Group’s FedWatch tool. .
Source From: Capital