(Reuters) – The U.S. Federal Reserve (Fed) may need to act on real long-term interest rates, i.e. net of inflation, to slow rising prices, the Fed said on Friday. Minneapolis Chapter President Neel Kashkari.
“We will need to watch the incoming data over the next few months to determine whether sticking to the current guidelines is enough to bring inflation down or whether we will need to do more,” he said in an essay posted on Medium. .
He said the war in Ukraine and the COVID-19 lockdowns in China are likely to delay a return to normal in supply chains.
“If these channels don’t quickly return to normal or if pressure builds on the economy, we’ll likely have to push real long-term rates into a tight stance to balance supply and demand,” he said. -he explains.
The Fed on Wednesday raised its main interest rate by half a point, its biggest increase in nearly 22 years.
(Report Lindsay Dunsmuir; French version Claude Chendjou, edited by Sophie Louet)
click here for restrictions
©2022 Reuters
