© Reuters.
Investing.com – Federal Reserve member Charles Evans said Friday, noting that US interest rates are expected to stop above 4.50% early next year. Interest slightly above this rate will be able to curb growth and reduce inflation.
Today, Evans said, “Offloading a significant interest reduction fee at first was a wise decision, as low interest is less than the natural rate (the rate at which growth equals interest).” But it will be costly to go beyond this level and there is uncertainty about the extent of the tightening policy to be adopted, so we need to take a moment to assess where we are and study the developments and data coming to us.
The comments came in the wake of similar comments from Fed member Mary Daley, who said that rates should stop rising because we may eventually find ourselves over-tightening monetary policy.
The Fed consensus now appears to be in line with the different tone among Fed regional bank heads.
Following these statements, market expectations for the December decision have eased, bringing the range from 75-100 to 75-50 points.
US stocks rose strongly, reaching gains of 750 basis points.
On the other hand, the American, which depends on the interest of the Fed, fell, rising to 111,778.
It rose more than 1.66%, to record 1,655 levels, after being close to 1,620 levels.
