Fed Governor Michelle Bowman indicated that she believes an additional 75 basis point rate hike at the next meeting is “appropriate,” according to prepared remarks to be delivered at the Massachusetts Bankers Association conference that were revealed Thursday. According to the notes, she also calls for hikes of at least 50 basis points at the following meetings if supported by incoming data. Additionally, “since inflation is unacceptably high,” there is no point in having “the nominal federal-funds rate below near-term inflation expectations,” said Bowman, while stressing that she is “committed to a policy that will bring the real federal-funds rate back into positive territory.”
Increased inflation projections ‘worrying’ – Buba’s Nagel
Bundesbank President Joachim Nagel stated on Thursday, during an event in Eltville am Rhein, that the European Central Bank’s revision of inflation projections is “worrying.” “If the expectations of inflation become unanchored, there is a risk of high wage demands,” Nagel noted adding that central banks “need to give households and businesses clear and timely signals that we are committed to maintaining price stability” as this would “help bring inflation back to target” and assist with lowering inflation expectations. Nagel emphasized that authorities need to make sure “the increased inflation does not take hold in the medium term.” He further went on to say that central banks should not “react too late or too little at the moment.” NN: Their is no way a recession can be avoided. AND the FED is in panic mode and will be slamming on the brakes on a icy road.; Net result DISASTER … To later to late To much to soon!