James Pollard, head of the American Federal Reserve Branch in Saint Louis, Missouri, has called on the US Central Bank policy makers to increase interest rates, saying that the level should be higher, in order to achieve the bank’s goal to be “adequately restricted” to reduce the inflation rate.
“Even with these generous assumptions, the interest rate is not yet in an area in which it can be considered adequately restricted,” Bloomberg news agency quoted Pollard as saying today, Thursday, during an event in Louiseville, in Kentucky.
He said: “In order to obtain a sufficiently restricted level, the interest rate will have to increase more.
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Pollard offered a graphic fee showing that the benefit of the interest is adequately restricted, which may range from about 5 to 7%, but he did not explain in his statements the level of interest rate he prefers.
This comes compared to the current target level, which ranges between 3. 75 and 4% for the main interest rate, which it reached earlier this month.
According to Bloomberg, Saint Louis Reserve Chairman, and is among the most policy makers this year, the Central Bank official calls for an additional interest in interest rates.
The Reserve Council raised interest rates by 75 percentage points on November 2, for the fourth time in a row, as part of its most restricted policy since the 1980s, to reduce the inflation rate that reached its highest levels within four decades..
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