A top Federal Reserve official said on Thursday that while the Fed does not expect its large balance sheet to ignite inflation, if its forecasts are wrong the U.S. central bank has the tools to keep inflation from rising out of control
San Francisco Fed President John Williams told a group of business leaders in Las Vegas that the Fed could raise rates more quickly if the economy starts to overheat, and also noted that the central bank has not ruled out selling assets if needed to keep inflation under control.
Williams also said that if the global economy slows “significantly,” that could prompt the Fed to delay raising rates beyond what is currently expected.
This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.