New York Fed Chairman Williams said the policy rate will eventually have to rise to around 4.5%. But the pace of the rise and peak in this tightening cycle will depend on future economic conditions, he said.
“The timing and how much we need to raise the rates depend on the data,” he said Wednesday at an event hosted by the State University of New York in Buffalo. To go back to, “she said.
According to the US employment report released on the same day, the number of non-farm payrolls increased by 263,000 from the previous month. The unemployment rate fell to 3.5%, the lowest level in nearly 50 years. Markets expect the US Federal Open Market Committee (FOMC) to raise interest rates by 0.75 percentage points at its next meeting in November. If the rate increases by the same range, the target range of the Federal Funds (FF) rate will be between 3.75% and 4%.
US employment rises by 263,000, unemployment drops unexpectedly; pressure continues on the Fed (3)
Williams said he was aware of the global impact of the Fed tightening and was in contact with central banks in other countries and regions facing high inflation such as the United States. You added that the focus of the US authorities is on the internal goal of restoring price stability.
“We are all making our efforts to make decisions that will bring the economy back into balance,” he said.
Original title:Williams of the Fed sees rates move to around 4.5% to cool prices(extract)
