In view of the high price pressure, US Federal Reserve Director Michelle Bowman does not expect that the US interest rate peak has yet been reached. According to the text of the speech at a bank symposium in Kansas on Saturday, Bowman said that she assumes that further interest rate hikes will be necessary to bring inflation down to the target of two percent. The course is determined by the incoming data. But if these show that progress in fighting inflation is faltering, the Fed should be ready. Bowman spoke on Saturday’s rate hikes in the plural, suggesting she believes the Fed has more than one step up to go. Central bank chief Jerome Powell recently left the door open for a further hike in September, but at the same time did not rule out that a pause is also possible. The Fed has raised interest rates in eleven steps to currently 5.25 to 5.50 percent in the fight against inflation. The overheated US labor market had recently cooled off, leading to speculation on the financial market that interest rates might now have peaked. However, wages rose more than expected, which could boost inflation.
More US rate hikes on the horizon – Economy
