WASHINGTON.- The president of the Richmond Federal Reserve, Thomas Barkin, said that there are good arguments for the United States central bank raise the benchmark interest rate by 50 or 75 basis points at its July monetary policy meeting.
“I feel quite comfortable with what Jay (Jerome Powell) said (…) He offered a range that I consider quite reasonableBarkin said during a webinar held by the National Association for Business Economics, referring to the latest comments from the Fed chairman.
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The Fed chief noted last week that the central bank forecasts as base scenario an increase of 50 or 75 percentage points on the interest rate at its July meeting.
The Fed raises rates 0.75 percentage points and warns of a slowdown in the US economy
The Federal Reserve raised its target interest rate by three-quarters of a percentage point to stem a spike in inflation, forecasting a slowing economy and rising unemployment in coming months.
The rate hike was the biggest by the US central bank since 1994, and comes after data showed little progress in its battle against inflation.
U.S. central bank officials signaled a faster path of rising borrowing costs, aligning monetary policy more closely with a rapid shift this week in financial market views on what is needed to rein in prices.