Central Banks
Fed Officials Won’t Relent on Path to 4.5% and May Move Higher
- Drumbeat of hawkish comments have pushed back on pivot bets
- ‘I don’t know how we pause’ until inflation eases, Waller says
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The Federal Reserve is closing ranks around a goal of quickly raising their benchmark interest rate to around 4.5% then holding it there, while being prepared to go higher if elevated inflation fails to show signs of easing.
The aim, which is widely shared among the US central bank’s 19 policymakers, suggests they are on course to deliver a fourth straight 75-basis-point rate increase next month. The impact on energy prices of OPEC oil production cuts and a strong September jobs report bolster the case, which could get a further boost from fresh inflation data on Oct. 13.