RATE INCREASES IN DECEMBER, JANUARY SEEN
The Fed last raised rates in September, and it is widely expected to lift its current 3.75 per cent to 4 per cent interest rate target range by a quarter percentage point at the December 8-9 monetary policy meeting, following that with another increase in January.
Most Fed officials have signalled support for steady and small increases to help lower inflation, but last week’s price data and the comments of Fed Governor Christopher Waller have suggested some on the Fed may want a bigger increase next month.
A number of Fed officials have said a more measured pace of rate increases allows the economy time to adjust to the rise in borrowing costs.
Collins cautioned that her expectation that the Fed can move gradually “doesn’t necessarily mean a particular cadence.” She also reiterated that the data flow from recent months has shifted where the Fed could end up in its current tightening cycle.
“I do think that the price data we’ve seen over the past three months, and the labor market on a stronger footing, does make me think that the path of policy rates over the, you know, next year might be a bit higher than I had thought a couple of months ago,” Collins said.
Source: www.channelnewsasia.com
