The head of the New York Fed calls for a faster rate hike

New York Fed Chairman John Williams has called for a faster hike in interest rates to reduce inflation.

Williams called for a second rate hike of 75 basis points at the meeting scheduled for late July.

Williams said interest rates need to be raised between 3 and 3.5% by the end of quest’year and up to 4% next year, while excluding that the US economy will slide in a recession.

On June 15, the Central Bank of the United States announced the largest interest rate hike in 28 years, while increasing the reference borrowing rate by 75 points to counteract rising inflation.

With this third consecutive hike, interest rates are now in the 1.5-1.75% range.

The Fed’s Fiscal Policy Committee confirmed that the Fed remains “strongly committed to bringing inflation back to its 2% target,” with the expectation that it will continue to raise the key interest rate.

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