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Is the Fed preparing to pivot on interest rate hikes? Not so fast, policymakers say
Fed should slow down ‘blistering pace’ of rate hikes, still playing catch-up: Alan Blinder
Former Federal Reserve Vice Chairman Alan Blinder weighs in on the Fed’s next moves following the October CPI report and offers insight on the U.S. economic outlook.
Federal Reserve policymakers poured cold water on investor hopes for a pause in interest rate hikes as they stress the need to crush runaway inflation and warn of economic pain to come.
In speeches this week, central bank officials reiterated their resolve to sufficiently tighten monetary policy, hammering home their commitment to corralling stubbornly high consumer prices.
San Francisco Fed President Mary Daly said Wednesday in an interview with CNBC that she sees interest rates peaking at a range of 4.75% to 5.25%. With the benchmark federal funds rate now at a range of 3.75% to 4% — already well into restrictive territory — that would imply another 125 basis point increase.
Although policymakers have acknowledged that it may be time to start slowing the pace of rate increases following a government report earlier this month that showed inflation moderated in October, they have stressed that does not mean they want to pause hikes altogether.
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