(Finance) – The Fed has room for further interest rate hikes, because inflation is still high and the cost of money needs to be raised to slow demand until there are clear signs that prices are falling. The president of the Kansas City Fed said today Esther Georgein an interview with Cnbc, unofficially starting the Jackson Hole Symposium in Wyoming, hosted by the Kansas City Fed.
“We still have high inflation. We saw some slowdown in numbers in July, but I think there is more work to do“said George, admitting that i July data they might Not represent a turnaround inflation which, to see a “convincing” trend, one should have at least three consecutive months of good data.
George admitted that the unemployment could rise with the rise in interest rates, ba claimed that at the moment he sees no clear signs of recession in his district.
The banker he did not want to give precise indications on the level of interest rates of interest in September, but in another interview with Foox News he said that the US central bank will continue to raise rates until it “reaches a point where inflation begins to decelerate significantly”. Rate increases of up to 4% and even 5% to combat inflation are not excluded.