Federal Reserve officials, picking up where they left off over the weekend in Jackson Hole, stressed their commitment to defeating inflation while remaining vague on how big their policy move will be next month. Three regional Fed presidents reiterated in separate remarks on Tuesday that curbing the hottest prices in almost 40 years was their top priority, with New York Fed chief John Williams agreeing interest rates probably need to advance above 3.5% at some point to achieve their goal. “You do need to get a little bit, or somewhat above that, because you’re trying to get not just to neutral, you’re also trying to get demand back in line with supply,” he said during a virtual Wall Street Journal interview in which he pushed back against market bets that the Fed would cut rates next year. “It’s going to take some time before I would expect to see adjustments of rates downward.”
Source: The Bond Buyer
