Economist says there’s no need for the Fed to keep hiking interest rates

Nobel Prize-winning economist Christopher Pissarides believes there’s no need for the Federal Reserve to keep raising interest rates in the coming months, saying policymakers at the U.S. central bank should instead look to take a breather in the battle against inflation. His comments come shortly after data on Wednesday showed U.S. inflation fell sharply to a two-year low of 3% in June. The reading appeared to underscore the Fed’s relative success in containing price rises following a rapid increase in interest rates. The Fed has previously signaled its intent on pushing ahead with additional monetary policy tightening. … The U.S. central bank held its key borrowing rate steady in a target range of 5% to 5.25% last month, but policymakers at the meeting indicated the likelihood of half a percentage point more of additional tightening before the end of 2023.
Source: CNBC – Bonds