Fed officials pushing for another rate hike are 'playing with fire' and driving up recession risks as policy makers appear split on next move
Federal Reserve policymakers appear split on what to do next with interest rates in their work to cool inflation but those looking for yet another increase are raising the risk of recession for the world's largest economy, Pantheon Macroeconomics says.
They said history of the past few cycles shows that the low in inflation tends to come almost two years after the peak. The"Given that the cumulative hikes in this cycle have been the steepest since 1980, we are very confident in arguing now—just 14 months after the first hike—that a great deal of downward pressure on inflation is in the pipeline," they said.
"If there's going to be a bias to action, for me it would be a bias to increase a little further as opposed to cut,"Also among Fed voices,last week indicated the central bank may not be able to pause rate hikes at its upcoming meeting. "The data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren't there yet," she told the Texas Bankers Association in San Antonio.
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