A Federal Reserve member said he was ready to approve another rate hike since recent banking-system problems haven't resulted in a meaningful reduction in lending, and rising inflation is being maintained by solid growth.
"Monetary policy has to be tightened much further," Fed governor Christopher Waller said in a speech in San Antonio on Friday. "I would welcome evidence of reducing demand, but I believe there is more work to be done until I see inflation moving significantly and persistently down toward our 2% objective."
Last month, the Federal Reserve boosted its benchmark interest rate by a quarter percentage point to a range of 4.75% to 5%, extending the quickest pace of rate rises since the early 1980s to battle inflation, which hit a 40-year high last year.
Several central bank officials expressed support this week for a pause in rate hikes following one more increase at their next meeting, May 2-3. Mr. Waller, on the other hand, used this year's stronger-than-expected economic growth and persistently high inflation to conclude that the outlook now supported tighter monetary policy.
Last month, the Federal Reserve boosted its benchmark interest rate by a quarter percentage point to a range of 4.75% to 5%, extending the quickest pace of rate rises since the early 1980s to battle inflation, which hit a 40-year high last year.
Several central bank officials expressed support this week for a pause in rate hikes following one more increase at their next meeting, May 2-3. Mr. Waller, on the other hand, used this year's stronger-than-expected economic growth and persistently high inflation to conclude that the outlook now supported tighter monetary policy.
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