(Finance) – Un increase in interest rates of 50 or 75 basis points at the meeting of September of the US Central Bank is a “reasonable” way to bring short-term financing costs to just over 3% by the end of the year and just above this threshold in 2023. He said this. Mary Daly, chairman of the San Francisco Federal Reserve, in an interview with CNN International. Once this threshold is reached, it should be maintained and not cut quickly, the economist added.
“We need to raise the rate, at least to neutral, which is around 3%, but probably in restrictive territory: a little above 3% this year and a little above 3% next year – he added – I really think about the “raise-and-hold” strategy such as the one that has historically paid off“.
The Federal Reserve has raised rates by three quarters of a percentage point in July, bringing them to a range of 2.25% to 2.5%, after an increase of the same size at the June meeting and smaller increases in the previous months. In the minutes of the last meeting, released yesterday evening, no indications emerged as to the extent of the next meeting.
“We have a lot of work to do at the FED to bring us back to price stability – Daly said during the interview – We want don’t get this idea that we’re going to have this broad hump-shaped badger path where we will increase very quickly this year and then we will cut aggressively next year. ”