Central Banks

Fed Officials Eye Further Rate Hikes, With Possible Peak Above 5%

  • Barkin says Fed must do whatever it takes to curb inflation
  • Collins says it’s premature to call the peak but it’s moved up
Susan Collins

Photographer: Peter Davis/Federal Reserve Bank of Boston

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Federal Reserve policymakers said borrowing costs need to keep rising to curb high inflation, putting a peak above 5% next year in potential view.

“It is entirely conceivable to me we would end up over 5%,” Richmond Fed President Thomas Barkin said in an interview Friday on CNBC. “But to me, that’s not a plan -- that would be an output of our efforts to try to keep inflation under control.”