(Finance) – Even if the risk of recession increases, the American Central Bank does not seem to be willing to ease its grip on interest rates. Indeed, as said by the Cleveland Fed president Loretta Mestercould reach over 4% in 2023.
“My view at the moment is that it will be necessary to bring fed funds rates above 4% by the end of next year to stay at that level,” Mester said. This means that – according to Loretta Mester – Jerome Powell’s Fed will not cut rates throughout 2023.
US rates currently stand at 2.25% -2.50%.
Loretta Master is a voting member of the FOMC, the monetary policy arm of the US central bank, responsible for setting interest rates.