In an interview with Reuters, Evans said, “From now on, I do not think that the interest rising will be proactive; I think the government is seeking for the proper level of constraining monetary policy.
For the fourth time in a row and sixth time since March, the US Federal Reserve hiked interest rates by 75 basis points on last Wednesday. This is thought to be the quickest pace of tightening of monetary policy in decades.
The US Central Bank wants to limit economic growth and reduce inflation, which has risen to its highest level in 40 years, by accelerating the lifting of the benefit and raising borrowing costs.
Some economists and monetary policy makers believe that the federal must retract this sharp pace in increasing interest rates, and to turn into lower increases, in order to avoid the American economy in stagnation.
According to Evans, the American federal government will need to increase interest rates from the 4.50 to 4.75 percent range that he and the other central bank employees had previously predicted.
US government official: It’s time to slow down the rate of interest rate reduction
About Author
