Last month, inflation slowed as food and gas prices fell, but excluding those volatile categories, 'core' prices kept rising and are 5.6% higher than a year ago.
Federal Reserve increases interest rates to .25%. Powell says inflation needs to be controlled
The Federal Reserve enacted a quarter percentage point interest rate increase, expressing caution about the recent banking crisis and indicating that hikes are nearing an end.
Waller's comments expressing support for more rate hikes follow a forecast by the Fed's staff economists, revealed in Fed minutes Wednesday, for a "mild recession" later this year. The Federal Reserve building is seen January 22, 2008 in Washington, DC. The Fed cut its benchmark interest rate by three-quarters of a percentage point after two days of tumult in international markets due to fear of a recession in the United StatesWaller said that, like most of his colleagues, he is closely watching whether the collapse of two large banks last month will lead to a broad cut back in lending by the banking system, which could slow the economy.
But so far it's not clear how large the impact will be, he said, and job growth remains strong and inflation is far above the Fed's 2% target, "so monetary policy needs to be tightened further."His comments, to be delivered in San Antonio, Texas, echo those of several of his colleagues, who have said in recent weeks that they support at least one more rate hike. That would put the Fed's benchmark rate at about 5.1%, the highest in 16 years.
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