Fed’s Barkin is open to raising rates by 50 or 75 basis points in July

Federal Reserve Bank of Richmond President Thomas Barkin kept his options open on how big the central bank should go when it raises interest rates later this month, following an increase of 75 basis points in June. “I am one of the guys who like the option value of deciding the week of the meeting as opposed to two weeks before the meeting,” he told reporters Tuesday after a speech in Charlotte, North Carolina. “But I thought Jay’s guidance the last time was very sound. We’ll get a little bit more information before the meeting and importantly we’ll get CPI. I’ll reserve judgment.” The consumer price index for June will be released on Wednesday. It is expected to show an 8.8% increase from a year earlier, marking the largest jump since 1981, according to the median forecast in a Bloomberg survey.
Source: The Bond Buyer