In a speech given yesterday at the Brookings Institution, Fed Chair Jerome H. Powell said that the American Central Bank may scale back the pace of its interest rate hikes already in December.
"Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening so far are yet to be felt. Thus, it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down. The time for moderating the pace of rate increases may come as soon as the December meeting, Powell said.
He further added that the ultimate level of rates will need to be somewhat higher than thought at the time of the September meeting.
In September, Fed officials signaled the intention of continuing to hike until the funds level hits a terminal rate, or end point, of 4.6% in 2023.
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