A “bell” on the impact of interest rate hikes on the US economy – which has not yet been fully felt – two US officials rang today Fed“seeing” further slowdown on the horizon.
“In total, we are still not seeing the full results of policy,” the Fed chief said in Richmond, Thomas Barkin, during an event in New Orleans. For his part, the head of the Fed in Atlanta, Raphael Bostick, he was quick to agree.
This comes as the Fed considers whether to hike again after leaving interest rates unchanged at its last two meetings.
It is currently in the range of 5.25% – 5.5%, the highest levels in the last 22 years.
“I think our policy is restrictive and probably quite restrictive, but I think we’re still going to have bumps along the way,” Bostick pointed out.
“Inflation will reach 2%,” he said. “We will maintain a restrictive policy until that happens or until we are sure it will happen,” he added.
Barkin, one of the officials calling for tighter policy from the Fed to tackle inflation, said he believed the US economy was “not as buoyant” as recent data showing strong growth in the third quarter suggested.
“I believe that slowdown is cominghe emphasized.