“If the numbers come in close to that I think that can we continue with our liftoff plan,” he said during the Atlanta Fed’s Banking Outlook Conference.
“The ultimate pace at which monetary policy accommodation is removed will need to be data driven and forward looking.”Ītlanta Fed President Raphael Bostic said Thursday that he currently still expects to raise rates in March provided the economy evolves as he anticipates. “Geopolitical events add upside risk to the inflation forecast even as they put some downside risk to the near-term growth forecast,” Mester said. Higher oil prices hitting Americans in the pocketbook could dampen demand.īut lessons from the 1970s oil shock are likely to also weigh on policy makers grappling with high inflation that they worry could become entrenched, and that concern is expected to dominate. Soaring energy costs could push headline inflation even higher, although the Fed typically also takes into account what that means for household spending. will also be a consideration in determining the appropriate pace at which to remove accommodation.” Interest-rate futures show a quarter-point increase next month is more than fully priced in.Ĭleveland Fed President Loretta Mester said earlier Thursday that the “implications of the unfolding situation in Ukraine for the medium-run economic outlook in the U.S. Traders and economists alike still see the Fed kicking off rate hikes in March. economy, and it may not be much easier by the time of our March meeting.” Waller, who favored raising rates by 100 basis points by the middle of the year and beginning to shrink the Fed’s bloated balance sheet by the central bank’s July meeting, said it was “too soon to know how Russia’s attack on Ukraine will affect the U.S. The debate is putting focus on several key moments over the next two weeks: January figures on the Fed’s preferred inflation gauge, due Friday Chair Jerome Powell’s semiannual monetary-policy testimony to Congress on March 2 and 3 the February employment report on March 4 and February data on the consumer price index, due March 10.
“A 50-basis point hike would help do that” if data on jobs and prices stay hot in coming weeks, he said.įed officials prior to the Russian invasion had vigorously signaled their readiness to raise interest rates when they meet March 15-16 to confront inflation, while keeping their options open on how far or how fast they move following liftoff.
#MASHINSKY RAISE TRACK FULL#
“With the economy at full employment and inflation far above target, we should signal that we are moving back to neutral at a fast pace,” Governor Christopher Waller said Thursday in remarks to an event at the University of California, Santa Barbara.
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