Recently retired Federal Reserve vice chairman Randal Quarles praised the RBA’s Philip Lowe for not raising rates too fast.
is sensible policy that helps avoid excessive economic pain, says the US Federal Reserve’s recently retired vice chairman, Randal Quarles.in a move that surprised financial markets, which had been expecting a fifth half-percentage-point increase, and sparked the biggest sharemarket rally in two years.Dr Lowe said the pace of inflation was slowing, although it remained too high, and he expected it to peak at 7.75 per cent in Australia and fall back to 2 per cent - 3 per cent late in 2024.
Dr Lowe recently told a parliamentary hearing that Australia was “in a much better position” than America because “wages growth in Australia is still consistent with the inflation target. In the US it is not and that is a significant issue”. The US Federal Reserve has increased its rate by more than 3 percentage points since March to 3.25 per cent, while the RBA has increased the official cash rate by 2 ½ percentage points to 2.6 per cent in the same time frame.
Mr Quarles, who is founder and chairman of alternatives asset manager Cynosure Group and was once managing director of private equity giant The Carlyle Group, said he was confident the Fed will control the 40-year-high in inflation burdening US households and 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.
RBA’s dovish pivot risks extending rate rising cycle: ANZANZ has warned that the RBA’s decision to slow the pace of interest rate rises risks propping up consumer demand and extending the duration of the current tightening cycle.
Read more »
Interest rates decision live: RBA decides on 0.25% rate rise in conservative moveThe Reserve Bank is about to meet to decide on whether to continue its series of supersized hikes to Australia's cash rate. Join us live for the decision and all the analysis. Details: 7NEWS
Read more »
RBA interest rates: Darkening global economy argues for caution on rate risesThe Herald's View: After five months of lifting official rates at the fastest pace since the early 1990s, the Reserve Bank of Australia on Tuesday gave some strong hints that this trend is slowing down
Read more »
S&P/ASX200: ASX rockets 3.8pc as RBA pivot soothes recession anxietyThe local sharemarket posted its best session in more than two years as the RBA’s shock move triggered a sharp fall in bond yields and the Aussie dollar.
Read more »
RBA hikes interest rates for sixth consecutive monthBREAKING: The Reserve Bank has lifted interest rates for a SIXTH consecutive month, increasing the cash rate by another 25 basis points to 2.6 per cent. FULL STORY: 9News
Read more »