US central bankers face an unenviable task when they gather in Washington next week: Tackling persistent inflation without adding to financial sector turmoil.
Most analysts expect a small rise of 25 basis points at the end of the Federal Reserve's upcoming two-day meeting.WASHINGTON - US central bankers face an unenviable task when they gather in Washington next week: tackling persistent inflation without adding to financial sector turmoil after Silicon Valley Bank's rapid collapse.
While Fed Chair Jerome Powell earlier signaled willingness to speed up interest rate hikes if needed, most analysts and traders see a small rise of 25 basis points as the most likely outcome on Wednesday at the end of the Fed's two-day meeting.With fears of contagion after the rapid failures of three midsized lenders earlier this month, a minority of observers also believe the Fed could halt its rate increases.
Given the market turbulence, a bigger, 50 basis-point hike is now"off the table," Citigroup global chief economist Nathan Sheets said in an interview with AFP. US retail sales and wholesale prices slipped last month, providing some respite for the Federal Open Market Committee to consider when it mulls another interest-rate hike.
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