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Investing.com – Moments after the release of the preliminary US employment data, Cleveland state congresswoman Loretta Mester said it was too early to say whether the Fed will raise rates in May.
However, Mester expected interest rates to rise slightly from these levels, and they will be kept for a period of time after they are raised. She emphasized that the US central bank is likely to have more interest rate hikes in the future amid signs of containing the recent banking sector problems.
“To maintain inflation on a continuous downward path towards the 2% target, monetary policy must be tightened, and this will happen with the federal interest rate moving above 5% and staying at these levels for some time.”
“I hope we don’t tighten our monetary policies until something breaks,” she added. She added, “Bankers are telling the Fed’s policy makers that credit quality is within the safe range.”
Meester also indicated that she did not know how long the effects of the banking turmoil would last.
She stressed that the tension between the Bank and the Federal Reserve sector has led to increased uncertainty about the path of interest rates.
inflationary pressures
In her remarks, Meester said she expected growth and employment to slow and inflation pressures to ease.
Meester said there should be a “measurable improvement” in inflation as price pressures ease from their current 5 percent increase year on year to 3.75 percent this year and 2 percent by 2025.
She said growth must slow to below-trend levels this year before picking up next year. It said unemployment, now at 3.6 percent, should rise to between 4.5 percent and 4.75 percent by the end of 2023.
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Interest pricing now
The markets are now pricing the interest rate at the meeting scheduled for next May with fixing the interest rate instead of an increase by 25 points, as it appears that expectations show that 35.7% expect a rate hike by 25 points, after it was 42% the day before. The tool also indicates that it is holding at 64.3%, up from 58% the previous day.
Recently released data
And it came out negative. The report stated that only 145,000 jobs were added for the month of March, while experts expected the addition of 200,000 jobs, and the previous February reading was revised to 261,000 from 242,000 only.
This indicator determines the change in the level of those hired during the past month, with the exception of those hired in the agricultural sector. This indicator is published two days before the publication of the ADP Employment Report of the Official Bureau of Human Resources Statistics, which provides solutions in the field of employment for companies. Since its release in 2007, it has proven to be a good indicator for predicting the employment report.
Gold and the dollar now
It rose 0.5% to $2,048.
It rose 0.5% at $2031 an ounce.
While it declined near 101.19 points.
