Raphael Bostic, president of the Federal Reserve Bank of Atlanta and a member of the Fed’s interest rate policy committee, doesn’t think another hike is needed. But he’s watching how the current high interest rates are working their way through the economy.
Top Federal Reserve officials have made clear that any such pause may be brief with another rate hike likely as soon as their next meeting in late July.
With the Federal Reserve slated to raise the federal funds rate this week, the cost of debt is expected to increase another $1.6 billion for U.S. households, according to WalletHub. This will bring added pressure to communities in Massachusetts including Hingham, Needham and Marshfield, among others.
The Federal Open Market Committee’s expected rate hike this week, which would likely bring the short-term benchmark rate to a range of 1.25 to 1.5 percent, could not come at a worse time, according to a recent WalletHub study.
The Federal Reserve raised interest rates on Wednesday for the second time in three months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing U.S. economy and strengthening job market.
As expected, the Federal Reserve raised its benchmark short-term interest rate for the first time in a year, pushing up the federal-funds rate by a quarter percentage point to between 0.50 percent
The Federal Reserve could raise U.S. interest rates “relatively soon” if economic data keeps pointing to an improving labor market and rising inflation, Fed Chair Janet Yellen said on Thursday in a clear hint the U.S. central bank could hike next month.
U.S. retail sales fell more than expected in August amid weak purchases of automobiles and a range of other goods, pointing to cooling domestic demand that further diminishes expectations of a Federal Reserve interest rate increase next week.
San Francisco Federal Reserve Bank President John Williams on Thursday joined a growing chorus of his colleagues signaling support for a U.S. interest rate hike in coming months, saying that waiting too long could be costly for the economy.
