Fed Officials See More Rate Hikes Possible While Inflation Persists
- Governor Bowman signals more than one increase ‘likely’ needed
- Further tightening ‘certainly not off the table,’ Collins says
Two Federal Reserve officials said at least one more interest-rate hike is possible and that borrowing costs may need to stay higher for longer for the US central bank to ease inflation back to its 2% target.
While Boston Fed President Susan Collins said further tightening “is certainly not off the table,” Governor Michelle Bowman signaled that more than one increase will probably be required, cementing her position as one of the Federal Open Market Committee’s most hawkish members.