Economics
Fed on Track for Half-Point Hike in May as Hawkish Pivot Deepens
- New York Fed chief says 50 basis points a ‘reasonable option’
- Says ‘we do need to move policy back to more neutral levels’
This article is for subscribers only.
Federal Reserve officials are reinforcing expectations they’ll raise interest rates by a half percentage-point next month, accelerating a hawkish pivot to curb the hottest inflation in four decades.
“I think that’s a reasonable option for us because the federal funds rate is very low,” Federal Reserve Bank of New York President John Williams said Thursday in a Bloomberg Television interview. “We do need to move policy back to more neutral levels.”