(Reuters) – The U.S. Federal Reserve (Fed) must keep raising interest rates in future meetings, at least until it is certain inflation has peaked, it said on Wednesday. Minneapolis Fed President Neel Kashkari, who sees a spike in the cost of credit at 5.4%.
“In my view, it will be appropriate to continue raising rates, at least in future meetings, until we are certain that inflation has peaked,” he said in a post on the site. Minneapolis Federal Reserve website.
However, he noted that there is growing evidence that the worst is over for inflationary pressures.
Neel Kashkari believes that a break in the rise in interest rates could be envisaged when they have reached 5.4% while the range of “fed funds” targets is currently 4.25-4.50% .
Fifteen of the Fed’s 19 FOMC members expect that rate to rise by three-quarters of a percentage point or 100 percentage points in the coming months.
The Minneapolis Fed chairman also says rates should be kept at their peak for a “reasonable” period to allow time for central bank decisions to translate into the economy and continue to rein in inflation. .
“To be clear, in this phase, any sign of slow progress that would keep inflation elevated for longer would, in my view, warrant a potential policy rate hike,” he said.
The minutes of the last Fed meeting will be published this Wednesday at 19:00 GMT.
(Report Lindsay Dunsmuir; French version Claude Chendjou, edited by Blandine Hénault)
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