The US Federal Reserve has said it is “appropriate” to slow down its key rate hike in the near future.
In an interview with Bloomberg on Monday, Federal Reserve Vice President Lyle Brainard pointed out that in light of record inflation levels in decades, the Federal Reserve still has “extra work” to raise interest rates while keeping prices down.
“I think it might be appropriate that we move to a lower (interest rate) hike soon, but I think it’s important to emphasize that … we have extra work to do,” she said.
And she believed that the interest rate hike should be “more targeted” and data-driven to bring down inflation.
It should be noted that the US Federal Reserve raised the key interest rate 6 times this year, the last four of which – by 75 basis points, bringing the interest rate to 3.75-4%.
The Federal Reserve is aiming to bring the inflation rate down to 2%, but that’s still about 3 times as high.
Data released last week suggests that consumer prices posted their lowest weekly gain since January last year, and US officials are hoping that this may indicate that prices will soon begin to decline.