News Digest: US Interest rate hikes will continue for some more time

February 1, 2023

News Digest:

The Federal Reserve would continue to raise interest rates to a point that is high enough to bring inflation back down to its target rate. Governor Michelle Bowman confirmed that fed rates would continue upwards till inflation is back down to 2%.


Bowman told a conference of the American Bankers Association that the Fed’s overnight lending rate, currently in the 4.5-4.75% range, needs to be held for some more time in order to restore price stability, a report said.



Inflation rate is still hovering around the 5% annual rate and Bowman believes that a strong labor market alongside moderating inflation would make a soft landing possible for the American economy. Fed policymakers have also called for more rate hikes while pointing to the possibility of a more aggressive monetary policy stance in the wake of the huge job gains in January.


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