A top Federal Reserve official opens door to keeping rates high for longer
WASHINGTON (AP) — Federal Reserve Vice Chair Philip Jefferson suggested Tuesday that the central bank’s key rate may have to remain at its peak for a while to bring down persistently elevated inflation.
In a speech, Jefferson said he expects inflation to continue to slow this year. But he omitted a reference to the likelihood of future rate cuts that he had included in a previous speech in February. Instead, he said his outlook is that inflation will cool even with the Fed’s key rate “held steady at its current level.”
If elevated inflation proves more persistent than he expects, Jefferson added, “it will be appropriate” to keep rates at their current level “for longer” to help slow inflation to the Fed’s 2% target level. U.S. consumer inflation, measured year over year, was most recently reported at 3.5%.
Jefferson’s remarks appeared to open the door to the prospect that the Fed will dial back its forecast, issued at its most recent policy meeting in March, that it would carry out three quarter-point cuts this year to its benchmark rate, which stands at about 5.3%. Chair Jerome Powell is scheduled to speak later Tuesday and may comment on the Fed’s potential timetable for rate cuts.
Related articles
Twins' Byron Buxton is back after 2
CLEVELAND (AP) — Byron Buxton is back in the center of things for the Twins.The speedy outfielder re2024-05-19Cultural relics from Luxembourg on display in China's Henan
Over 200 pieces or sets of cultural relics from Luxembourg are being exhibited in Henan Museum in ce2024-05-19ACWF Holds Mobilization Meeting on Party History Learning and Education
Contact Us HomeNewsHighlightACWF NewsSocietyWom2024-05-19ACWF President Stresses the Role of Women, Women's Federations in COVID
Contact Us HomeNewsHighlightACWF NewsSocietyWom2024-05-19Kate Moss snubs Buckingham Palace garden party after failing to turn up to star
She is an ever-present fixture at A-list parties around the world.But Kate Moss failed to turn up to2024-05-19Artists perform during opening ceremony of 4th Asian Para Games in Hangzhou
(Xinhua) 14:41, October 23, 2023Artists perform during the opening ceremony of the 4th Asian Para Ga2024-05-19
atest comment