(Finance) – The Federal Reserve it needs to raise interest rates further because inflation is expected to be above the central bank’s target, for four years. The said it Cleveland Fed Chair Loretta Mesterin a speech at the University of California at San Diego.
“In order to guarantee that inflation is on a sustainable and timely path back to 2%, my view is that the rate will need to rise slightly from its current level and then hold for a while as we accumulate more data on inflation and how the economy is evolving” – added Mester – underlining that the US economy has shown greater underlying strength than expected at the beginning of this year “with progress on inflation stalling”.
Also there San Francisco Federal Reserve chairman Mary Daly, she believes the US central bank will hike interest rates “a couple” times this year to combat “persistent” inflation. Daly, who is not a voting member of the FOMC, the monetary arm of the Federal Reserve, stressed that inflation is slowing but still too high.
Analysts are looking to the Fed meeting, scheduled for July 25 and 26 and from which they expect it to raise the key interest rate in the United States again, after the break decided at last month’s meeting, for the first time in 11 meetings consecutive raises.