On Wall Street, the S&P 500 and Nasdaq indices have lost 17% so far this year and nearly 29%respectively, fearing that the strong rate hikes will lead the economy into a recession.
The head of the Federal Reserve Bank of Boston, Susan Collins, It said on Friday that the bank has more interest rate hikes ahead as it seeks to reduce inflation, adding that it hopes the likely path for monetary policy will not hurt the economy too much.
Saint Louis Fed President James Bullard said on Thursday that the US central bank needs to continue raising interest rates, as the path of monetary tightening has so far “had only limited effects on observed inflation.”
The comments by Bullard, who this year has voting rights on the Federal Open Market Committee (FOMC), followed the release of strong US retail sales data and fueled concerns that the entity would continue its aggressive stance against inflation.
Traders still largely expect the US central bank to raise interest rates by 50 basis points in December and to take the benchmark rate to a maximum of 5.02% in June next year.
Source: Ambito
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