Fed chair Jerome Powell said last week the central bank may consider another ‘unusually large’ rate hike at next month’s meeting
Federal Reserve officials voiced their determination again on Wednesday to rein in high inflation, although one noted a half-percentage-point hike in the U.S. central bank’s key interest rate next month might be enough to march on toward that goal.
Whether the Fed will plow ahead with a third straight 75-basis-point rate hike at its Sept. 20-21 policy meeting – a pace unmatched in more than a generation – or dial back a bit is of central interest to investors, businesses and consumers who are increasingly fearful that the central bank’s inflation fight may trigger a recession.
Several policy makers, including Ms. Daly, have shown stiffening resolve this week to continue the aggressive monetary tightening, with nearly all of them uniformly flagging that the central bank remains determined to press ahead with rate hikes until it sees strong and long-lasting evidence that inflation is on track back down to the Fed’s 2-per-cent goal.
“We are going to be tough and get that to happen,” Mr. Bullard said in an interview with CNBC. “I think we can take robust action and get back to 2 per cent.” Speaking in Virginia, Richmond Fed president Thomas Barkin also said the central bank has made clear it will “do what it takes” as he warned inflation will recede but “not immediately, not suddenly and not predictably.”
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