Central bankers warn of further rate hikes at ECB Forum

CryptoSlate
CryptoSlate

28 Jun 2023 5:00 PM

Central bankers discussed the need for more rate hikes as inflation continues to exceed the 2% target rate....

  • U.S. Federal Reserve chair Jerome Powell and other central bankers discussed the need for further policy rate hikes due to the strong labor market.
  • The central bankers aim to bring inflation down to the 2% target, despite concerns about a potential economic downturn.
  • ECB President Christine Lagarde emphasized the importance of persistence in reaching the inflation target.
  • Powell and Bank of England Governor Andrew Bailey agreed that the robust jobs market calls for further tightening, while Bank of Japan Governor Kazuo Ueda expressed a different view.
  • Powell mentioned the possibility of aggressive rate hikes if data supports it, as controlling inflation is a priority.
  • The Fed has raised interest rates consecutively for three quarters and may continue to do so in upcoming meetings.
  • Economists believe the impact of these rate hikes on the economy will be delayed.

The article discusses the views of central bankers, particularly Jerome Powell, on the need for further policy rate hikes to control inflation. While there are differing opinions among the central bankers, Powell's statements suggest a potential for aggressive rate hikes. Economists believe these hikes may have a delayed impact on the economy.

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You May Ask

Who made the statement about further policy rate hikes during the ECB Forum on Central Banking?What is the target inflation rate mentioned in the article?What is the main priority for central banks, according to Jerome Powell?How many consecutive interest rate hikes has the Fed implemented so far?What do economists believe about the impact of these rate hikes on the economy?

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