Economics
Fed Hawks and Doves Stay the Course on Rate Hikes to Cool Prices
- Daly, Barkin and Bullard back raising rates to curb demand
- Resolve undimmed by anecdotal reports that economy is slowing
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Federal Reserve officials from both the hawkish and dovish wings of the US central bank confirmed their determination to raise interest rates, even as business contacts report US economic growth shifting into a lower gear.
Dove Mary Daly of the San Francisco Fed and her more hawkish colleague James Bullard of St. Louis both backed a plan to raise rates by 50 basis points this month and next to counter the hottest inflation in 40 years, while Richmond’s Thomas Barkin said it made “perfect sense” to tighten policy.