Last week's jobs report points to a solid U.S. economy with little sign of a recession on the horizon and one that can withstand higher interest rates, St. Louis Federal Reserve president James Bullard said.
and shows little sign of an imminent recession, and can withstand higher interest rates, St. Louis Federal Reserve president James Bullard said Monday.sometime next year, as Americans grapple with the highest inflation in four decades and the Federal Reserve pushes borrowing costs higher.
Bullard also said he currently supports a 0.75 percentage point increase in the Fed's benchmark short-term interest rate at its next meeting later this month. Its rate is currently in a range of 1.5% to 1.75%,Separately, Esther George, president of the Federal Reserve Bank of Kansas City, sounded a more cautionary note in a speech Monday, in which she suggested the Fed’s large rate hikes could prove disruptive.
George noted after just four months of Fed rate increases, “there is growing discussion of recession risk, and some forecasts are predicting interest rate cuts as soon as next year.” Those concerns suggest the Fed is lifting interest rates “more quickly than the economy and markets can adjust,” she added.The Fed typically moves rates in quarter-point increments, but Chair Jerome Powell has said the Fed wants to move “expeditiously” to a level of about 2.
Bostic said he also supports a 0.75 percentage point rate increase later this month, as have other Fed officials such as Fed governor Christopher Waller. Two quarters of shrinking output would meet one rule of thumb for a recession. But the official definition of a recession, set by theBullard said that other measures of the economy, such as a broad measure of workers' and business' incomes, suggest the economy may have expanded in the first six months of this year. Businesses and other employers also added 2.7 million jobs during that time, a robust total that reflects an optimistic outlook among businesses.
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.
Neighbors describe 'warzone' as suspect and police exchanged gunfire in St. AlbansResidents in the St. Albans neighborhood said it sounded 'like a warzone' as a suspect and officers exchanged more than 100 rounds of gunfire. Christinafantv reports.
Read more »
Video: St. George teen boldly compels thousands to redefine women's beautyUtah teen Lucy Higgins courageously gave a moving speech about how pop culture's portrayal of what a woman should be can feel unreachable to young girls like herself.
Read more »
Major BART delays reported at San Francisco 16th St./Mission station in all directionsThere is a major delay Monday morning on BART after a medical emergency stopped trains on the San Francisco Line at the 16th Street-Mission station, BART officials said.
Read more »
Neighbors describe 'war zone' as suspect and police exchanged gunfire in St. AlbansThere are new details on a deadly shootout between police and an armed man in Queens. Detectives say the suspect made threats against members of the NYPD and local leaders, including the governor. JohnBDias has more on what neighbors are saying.
Read more »
Tiger Woods Part of Celebration of Champions at St. AndrewsThe reunion came two days before the start of the 150th British Open on Thursday.
Read more »
San Diego's Proposed Settlement Would Divert Funds From Capital Projects to Pay for 101 Ash St.Mayor Todd Gloria has announced a plan for the 101 Ash Street real estate debacle that would allow the city to buy both the Ash Street building and Civic Center Plaza.
Read more »