The Federal Reserve is well on its way to another sharp interest rate hike in July and perhaps September as well, even if it slows the economy, according to statements Thursday from two policymakers. Fed Governor Christopher Waller left little doubt that he believes increases are necessary if the institution is to meet its duties, and the market’s expectations, as an inflation fighter. “I’m definitely in support of doing another 75 basis point hike in July, probably 50 in September, and then after that we can debate whether to go back down to 25s,” Waller told the National Association for Business Economics. “If inflation just doesn’t seem to be coming down, we have to do more.” In June, the Fed approved a 75 basis point, or 0.75 percentage point, increase to its benchmark borrowing rate, the biggest such move since 1994.
Source: CNBC – Bonds
