Central Banks
Fed Officials Lean Into Higher Rates as Inflation Keeps Going
- Bostic urges 5% to 5.25% rates into 2024 to curb inflation
- Kashkari open-minded on quarter- or half-point March hike
This article is for subscribers only.
Federal Reserve officials said interest rates will need to increase further and stay elevated into next year to curb US inflation that’s showing few signs of abating despite the central bank’s most aggressive monetary tightening in a generation.
Interest rates would need to rise to between 5% and 5.25% and then remain there “until well into 2024,” Atlanta Fed President Raphael Bostic wrote in an essay published Wednesday. “This will allow tighter policy to filter through the economy and ultimately bring aggregate supply and aggregate demand into better balance and thus lower inflation.”