New York Federal Reserve Bank President William Dudley said on Monday the Fed remains on track for a likely rate hike this year and could reach its inflation target next year, faster than many other policymakers anticipate.
Dudley said the first hike could come as soon as October as policymakers take stock of an improving economy.
“If the economy continues on its trajectory … it’s a pretty strong case for liftoff,” with the Oct. 27 to 28 session “live” for the rate hike debate, Dudley said at an event sponsored by the Wall Street Journal in New York. The Fed also meets Dec. 15 to 16. [FED/DIARY]
The U.S. central bank delayed a hike at its September meeting amid uncertainty about the global economy, a U.S. market selloff and concern that inflation might fall further away from the Fed’s two percent target.
But Dudley said he now feels inflation could reach that target sometime next year, a year or more sooner than the median forecast by Fed policymakers earlier this month.
Dudley said he was confident weak global economic conditions and the strong U.S. dollar would prove to be passing influences and allow the Fed to raise rates soon.
via Reuters
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.