The President of the Federal Reserve Bank of San Francisco, Mary Dalytold Reuters on Friday that two more interest rate hikes this year would be a “very reasonable projection”.
Featured Statements
“I fully support the decision not to raise rates in June.”
“The risks of undertightening versus overtightening are more or less balanced.”
“Community contacts fear that housing has bottomed out and rents are accelerating.”
“The banking contacts are attentive to the loan portfolios, but careful with the financial balances.”
“Credit tightening so far is consistent with what would have been expected without the March banking turmoil.”
“We remain attentive to the possibility of further tightening; is another good reason to slow down the pace of rate hikes“.
“Community and business contacts see inflation and labor shortages as big problems.”
“Both inflation expectations and the frequency and magnitude of price changes follow a downward trajectory.”
“We want to work decisively and carefully to restore price stability.”
Market reaction
The Dollar remains strong following these comments and the Dollar Index is up 0.4% on the day, settling at 102.80.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
