All articles tagged with #june meeting
Philadelphia Federal Reserve President Patrick Harker is urging the Federal Reserve to skip an interest-rate hike at the upcoming June Federal Open Market Committee meeting, doubling down on his previous calls for a pause in monetary policy tightening.
The Federal Reserve is expected to keep interest rates steady at their June meeting and assess more data on the economy and bank lending before preparing to raise them again later this summer.
Federal Reserve officials unanimously agreed to raise interest rates at their meeting this month but were divided over whether additional increases would be necessary, with more officials signaling they were ready to pause. Fed Chair Jerome Powell suggested he was open to holding interest rates steady at the central bank’s June meeting.
Dallas Federal Reserve President Lorie Logan said that inflation remains too high and is not cooling quickly enough to justify pausing interest rate increases at the central bank's June meeting. She emphasized that the decision will ultimately hinge on inflation and employment data released shortly before the June 13-14 meeting. Although inflation has eased from a peak of 9.1%, it remains about more than double the pre-pandemic average and well above the Fed's 2% target rate. The hawkish comments from Logan and Cleveland Fed President Loretta Mester have raised the specter of an 11th rate hike in June.
The Federal Reserve is considering a "substitute" interest rate hike at its June meeting, which would involve adjusting the interest rate it pays on excess reserves held by banks. This move would signal the central bank's commitment to controlling inflation and supporting the economic recovery, without actually raising the federal funds rate. The Fed has previously indicated that it does not plan to raise interest rates until 2023, but some officials have expressed concern about rising inflation.