Federal Reserve's Kashkari: I may support pausing interest rate hikes in June

ChainCatcher news, according to a report by Nick Timiraos from the Federal Reserve News Agency, Federal Reserve official Kashkari recently stated that he may support keeping interest rates unchanged at the next meeting, allowing officials more time to assess the impact of past rate hikes and the inflation outlook. In an interview, he said, "I am open to the idea that we can slow down (the pace of rate hikes) a bit from now on." Federal Reserve officials have hinted that the decision on whether to raise rates at the policy meeting on June 13-14 could be a thrilling one.

Currently, within the Federal Reserve, a few people say that the degree of slowdown in inflation and economic activity is not sufficient to justify keeping interest rates unchanged. However, others, including Federal Reserve Chairman Powell, have suggested that they may pause to better study the potential lagging effects of rapid rate hikes. But he also stated, "I oppose announcing in any form that we have ended rate hikes, as we still need more information to assess." He concluded by saying that if high inflation persists and requires the Federal Reserve to maintain higher interest rates for a longer period or continue raising rates, then the pressures on the banking sector "could become more severe." (Source link)