Fed’s Anna Paulson says another rate hike may be needed to lower inflation
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Comments from Philadelphia Fed President Anna Paulson cross the wires: US central bank may need to raise interest rates again to lower inflation. September rate hike helped move policy to better inflation-fighting posture. Says she will support doing what’s needed to get inflatio
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The desk interprets recent comments from Fed Governor Susan Collins as indicative of a more hawkish stance regarding interest rates, emphasizing the need for sustained restrictive policy to combat persistent inflation pressures. Per the full note [source], Collins highlighted that the Fed may need to hike rates further to achieve its 2% inflation target, particularly in light of ongoing geopolitical tensions that could exacerbate inflation. This aligns with our view that the Fed is unlikely to pivot towards rate cuts in the near term, despite hopes for easing later this year. The broader market consensus appears to be split, with some firms anticipating a more dovish approach as inflationary pressures potentially cool in the coming months.
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