Federal Reserve Vice Chair Lael Brainard said Friday that U.S. interest rates will likely have to remain high for an extended period of time to combat inflation.
Federal Reserve Board Vice Chair Lael Brainard speaks with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management, the hospitality industry, and the housing and education sectors at the Federal Reserve building on Sept. 23, 2022, in Washington. Brainard said Sept. 30, 2022, that U.S. interest rates will likely have to remain high for an extended period to combat inflation, capping a week of tough rhetoric by Fed officials.
In remarks at a conference hosted by the Federal Reserve Bank of New York, Brainard said that international turmoil still threatens to disrupt global supplies of commodities and manufactured parts, a key factor pushing inflation higher. Additional inflationary shocks from Russia’s invasion of Ukraine, China’s COVID lockdowns, or severe weather events globally “cannot be ruled out,” she said.
Brainard also addressed concerns that rapid interest rate hikes by central banks around the world are raising the risks of global financial turmoil and recession. Maurice Obstfeld, formerly the top economist at the International Monetary Fund, warned earlier this month that the combined interest rate hikes by so many central banks could amplify their impact.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Brainard warns US rates to stay high, notes global impactFederal Reserve Vice Chair Lael Brainard said Friday that U.S. interest rates will likely have to remain high for an extended period to combat inflation, capping a week of tough rhetoric by Fed officials. In remarks at a conference hosted by the Federal Reserve Bank of New York, Brainard said that international turmoil still threatens to disrupt global supplies of commodities and manufactured parts, a key factor pushing inflation higher. “Weather conditions in several areas, including China, Europe, and the United States, are exacerbating price pressures through disruptions to agriculture, shipping, and utilities,” Brainard said.
Read more »
Fed's Brainard warns restrictive interest rates may be needed 'for some time'Federal Reserve Vice Chair Lael Brainard warned Friday that central bank policymakers will need to raise interest rates higher and keep them elevated for some time to fight inflation.
Read more »
EUR/USD Back below the 0.9800 figure on US hot PCE and solid US dollarThe EUR/USD retraces from daily highs of around 0.9853 due to Fed officials expressing the necessity of higher rates for longer, as the US central ban
Read more »
Mortgage Rates Rise to 6.7%, Highest Since 2007Mortgage rates rose to their highest level in more than 15 years, a new postcrisis high that adds pressure to the already cooling U.S. housing market.
Read more »
Market Wrap: Bitcoin Showing Potential Signs of an UpswingDigital asset markets are navigating a challenging environment of high inflation, inverse correlations to the U.S. dollar, increasing interest rates and higher consumer debt.
Read more »
Fed united on inflation front as Brainard rejects early rate cutsThe Federal Reserve's No. 2 official on Friday added her full endorsement of the U.S. central bank's higher-for-longer game plan for interest rates to curb inflation that new data shows is still running at more than three times policymakers' 2% target.
Read more »