Central Banks
Daly Sees Fed Raising Rates Above 5%, But How Far Is Unclear
- In separate events, Bostic and Daly vow to curb inflation
- Fed to decide whether to slow pace of increases again
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Two Federal Reserve officials said Monday that the central bank will likely need to raise interest rates above 5% before pausing and holding for some time.
“We are just going to have to hold our resolve,” Raphael Bostic, president of the Atlanta Fed, told the Atlanta Rotary Club. He said the Fed was committed to tackling high inflation and this warrants raising interest rates into a 5% to 5.25% range to squeeze excess demand out of the economy.