Philadelphia Fed President Tomas Barkinsaid on Wednesday that he would be open to a 50 bps rate hike in May if needed and will look at inflation and the strength of the economy, according to an interview on Bloomberg TV.
The war in Ukraine has added to inflationary pressures, he noted, but has not affected US demand. In fact, there is still a ton of excess demand for labor, he continued, noting that it looks like inflation will settle next year as the Fed’s tightening measures kick in, excess consumer savings are spent and barriers in the supply chain are reduced. Underlying demand in the economy remains strong, Barkin said.
At the same time as Barkin was making his comments, Fox reporter Charles Gasparino said he had been told by business sources that Wednesday’s strong core PCE reading (for Q4 2021) had all but assured a rate hike. 50 bp at the next meeting.
Gasparino said some traders thought the Fed might move to raise rates within the meeting, but other sources had told him this was an unlikely move.
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
