Federal Reserve officials will discuss whether to raise rates by 50 basis points or 75 basis points when they meet next month, with the decision being determined by economic data, New York Fed President John Williams said on Tuesday. “In terms of our next meeting, I think 50 to 75 is clearly going to be the debate,” Williams said during an interview with CNBC. “My view is we’ve got to get interest rates higher, and we have to do that expeditiously.” The policy maker said he supports raising the Fed’s benchmark interest rate to a range of 3% to 3.5% by the end of this year, and that the path for next year will depend on the data. He said he expects economic growth to slow and the unemployment rate to rise as the Fed hikes borrowing costs to tame inflation, but he doesn’t project a recession.
Source: The Bond Buyer
