The president of the Richmond Federal Reserve said on Friday that he is willing to act more “deliberately” in consideration of pace of upcoming hikes but said rates could continue to rise for longer and to a higher end point than expected.
In an interview on CNBC, Thomas Barkin explained: “When you put your foot on the brake, you think about steering in a very different way. You hit the brakes, sometimes you act a little more deliberately, and I’m willing to do that. And I think the implication of that is likely a slower pace of rate hikes, a longer pace of rate hikes and potentially a higher end point.”
On the other hand, the Boston Fed President Susan Collinssaid that, although is in favor of continuing with the increases of interest rates to reduce inflation, the pace of future hikes is likely to be slower than the one that the central bank has been applying in recent months.
“Right now, with inflation well above the Fed’s 2% target, the central task of the Fed must be to restore price stabilityCollins said in a speech at the Brookings Institution.
“The work to tame inflation is not over yet“, he stressed, while adding that “there are some hopeful signsalthough there is still no clear evidence that inflation may be moderating”.
“With rates now in restrictive territory, I think it’s time to change focus of how quickly rates are raised, the pace of hikes or how high (they go). In other words, determine what is restrictive enough,” Collins said.
“Later on, when we get to that point, in my opinion we’ll have to refocus how long to keep rates at that level,” he said.
Source: Ambito
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