Top Fed official sees need for more interest rate increases

RHONDELLA: WELCOME BACK. UNCERTAIN FINANCIAL TIMES FEELING EVEN MORE UNCERTAIN DUE TO THE INTEREST RATES STILL ON THE RISE. THESE AREN바카라 게임 웹사이트�T ALWAYS THE EASIEST TOPICS TO UNDERSTAND, SO JOINING US NOW TO HELP US ALL BREAK IT DOWN IS BANKRATE.COM U.S. ECONOMY REPORTER SARAH FOSTER. GOOD MORNING, THANK YOU FOR JOINING US AGAIN. >> THANKS FOR HAVING ME BACK. JENNIFER: WE SPOKE WITH YOU THREE WEEKS AGO ABOUT THESE RISING INTEREST RATES THAT KEEP GOING UP. ARE YOU SURPRISED THAT THE FEDERAL RESERVE DECIDED TO RAISE RATES BY ANOTHER QUARTER PERCENT THIS LAST WEEK? >> PROBABLY ONE OF THE BIGGEST HEADACHES, BUT ONE OF THE BIGGEST REPORTS FOR FEBRUARY, PRICES ARE STILL ELEVATED AND THE FED UNDERSTANDS THE MAIN OBJECTIVE IS MAINTAINING PRICE STABILITY. WHAT I바카라 게임 웹사이트�VE BEEN TELLING PEOPLE AND WHAT ECONOMISTS HAVE BEEN SAYING IS THAT THIS DECISION TO RAISE INTEREST RATES BY THAT SMALL AMOUNT, THAT IS ABOUT MEETING BOTH OF THESE CONCERNS IN THE MIDDLE. ON THE ONE HAND, YOU DON바카라 게임 웹사이트�T WANT TO CAUSE TOO MUCH PAIN FOR BANKS, BUT YOU ALSO WANT TO MAKE SURE THAT PRICES COME BACK A MUCH MORE SUSTAINABLE LEVEL. >> SINCE WE SPOKE A FEW WEEKS AGO, WE SEE TWO MAJOR BANKS COLLAPSE AND THE RIPPLE EFFECTS OF COUNTLESS OTHERS. WHAT DO YOU MAKE OF WHAT HAS HAPPENED? >> THE BOTTOM LINE THAT I LIKE TO TELL CONSUMERS IS THAT YOU SHOULD NOT BE PANICKING IF YOU PUT YOUR MONEY IN A BANK THAT IS PART OF THE FDIC, AND IF YOUR CASH FALLS WITHIN THE THRESHOLD. BUT THERE ARE SOME CONCERNS HERE ABOUT WHAT IS HAPPENING, SPECIFICALLY AT THESE MIDSIZE COMMUNITY BANKS, THAT THEY COULD WEIGH ON THE ECONOMY JUST A LITTLE BIT, NOT BECAUSE OF THESE FAILURES, BUT BECAUSE THESE REGIONAL-SIZED BANKS, THEY WANT TO MAKE SURE THEY RETAIN ENOUGH CASH ON HAND TO COVER ALL OF THE DEPOSITOR NEEDS. AND SO WE KNOW THAT THESE MIDSIZE BANKS, THEY REALLY MAKE UP A LARGE AMOUNT GOING INTO COMMERCIAL REAL ESTATE, EVEN FOR CONSUMER LENDING. THOSE LENDING STANDARDS, YOU CAN SEE A LITTLE BIT OF THAT ON THE ECONOMY. JENNIFER: TO FOLLOW-UP ON THAT, A POLL THIS PAST WEEK SHOWS THAT ONLY 10% OF AMERICANS HAVE A GREAT DEAL OF CONFIDENCE IN THE NATION바카라 게임 웹사이트�S BANKS AND FINANCIAL INSTITUTIONS RIGHT NOW. MORE THAN HALF THINK THE GOVERNMENT IS NOT DOING ENOUGH TO REGULATE BANKS AND FINANCIAL INSTITUTIONS. WHAT DO YOU THINK NEEDS TO BE DONE TO RESTORE TRUST IN THE INDUSTRY AT THIS POINT? >> WHAT WE DO KNOW HERE IS THAT TRUST IN THE BANKING SYSTEM IS THE BEDROCK FOR IT. WE CAN바카라 게임 웹사이트�T HAVE CONFIDENCE IN BANKS AND WE NEED TO HAVE CONFIDENCE IN BANKS AND ALSO A STRONG ECONOMY. WHAT WE ARE LIKELY GOING TO HEAR DISCUSSIONS ABOUT OVER THE NEXT FEW WEEKS, WE바카라 게임 웹사이트�VE ALREADY SEEN SOME REPRESENTATIVES POINT OUT THE IDEA OF DEPOSITS AT THE FDIC INSURANCE. JANET YELLEN KIND OF WALK THAT BACK A FEW DAYS AGO AND ADDRESSED AT THE CONGRESS. BUT I THINK WHAT YOU바카라 게임 웹사이트�RE GOING TO SEE HERE IS THAT THESE BANKING REGULATORS, THEY WANT TO MAKE SURE THAT ALL DEPOSITORS KNOW THAT THEIR CASH IS SAFE. THIS IS GOING TO BE A MAJOR AREA OF EMPHASIS FOR THEM GOING FORWARD. JENNIFER: SARAH FOSTER, THANK YOU AGAIN FOR YOUR INSIGHT

A senior Federal Reserve official said Friday that there has been little progress on inflation for more than a year and that more interest rate hikes are needed to get prices under control.Christopher Waller, a member of the Fed's governing board, did not specify how many more increases he supports, but said that inflation 바카라 게임 웹사이트�is still much too high and so my job is not done.바카라 게임 웹사이트�Last month, inflation slowed as food and gas prices fell, but excluding those volatile categories, 바카라 게임 웹사이트�core바카라 게임 웹사이트� prices kept rising and are 5.6% higher than a year ago. Waller pointed out that core prices have risen at about that same pace, or higher, since December 2021.Waller's comments expressing support for more rate hikes follow a forecast by the Fed's staff economists, revealed in Fed minutes Wednesday, for a 바카라 게임 웹사이트�mild recession" later this year.Waller said that, like most of his colleagues, he is closely watching whether the collapse of two large banks last month will lead to a broad cut back in lending by the banking system, which could slow the economy.But so far it's not clear how large the impact will be, he said, and job growth remains strong and inflation is far above the Fed's 2% target, 바카라 게임 웹사이트�so monetary policy needs to be tightened further."His comments, delivered in San Antonio, Texas, echo those of several of his colleagues, who have said in recent weeks that they support at least one more rate hike. That would put the Fed's benchmark rate at about 5.1%, the highest in 16 years. Waller also underscored that he supported keeping the Fed's benchmark rate elevated for much longer than investors expect. Traders in interest-rate futures expect that the central bank will lift rates one last time at the Fed's next meeting in May, and then cut them three times by the end of the year, according to the CME Fedwatch tool. Those expectations likely reflect an assumption that the economy will tumble into a recession, forcing the Fed to pivot toward lower interest rates.Waller, however, said that the slow progress on inflation meant that, 바카라 게임 웹사이트�Monetary policy will need to remain tight for a substantial period of time, and longer than markets anticipate.바카라 게임 웹사이트�Still, Waller did express some optimism, particularly about signs in Wednesday's inflation report that showed rental price growth is finally slowing, after months of sharp gains. The number of new apartments under construction is at historically high levels and vacancies have ticked up, pushing developers to lower rents on new apartment leases.Waller said as those trends continue to feed into government rental price data, inflation will fall further. By the end of this year it could reach as low as 3% to 3.5%, he said.

A senior Federal Reserve official said Friday that there has been little progress on inflation for more than a year and that to get prices under control.

Christopher Waller, a member of the Fed's governing board, did not specify how many more increases he supports, but said that inflation 바카라 게임 웹사이트�is still much too high and so my job is not done.바카라 게임 웹사이트�

Last month, , but excluding those volatile categories, 바카라 게임 웹사이트�core바카라 게임 웹사이트� prices kept rising and are 5.6% higher than a year ago. Waller pointed out that core prices have risen at about that same pace, or higher, since December 2021.

Waller's comments expressing support for more rate hikes follow a forecast by the Fed's staff economists, revealed in Fed minutes Wednesday, for a 바카라 게임 웹사이트�mild recession" later this year.

Waller said that, like most of his colleagues, he is closely watching whether the collapse of two large banks last month will lead to a broad cut back in lending by the banking system, which could slow the economy.

But so far it's not clear how large the impact will be, he said, and job growth remains strong and inflation is far above the Fed's 2% target, 바카라 게임 웹사이트�so monetary policy needs to be tightened further."

His comments, delivered in San Antonio, Texas, echo those of several of his colleagues, who have said in recent weeks that they support at least one more rate hike. That would put the Fed's benchmark rate at about 5.1%, the highest in 16 years.

Waller also underscored that he supported keeping the Fed's benchmark rate elevated for much longer than investors expect. Traders in interest-rate futures expect that the central bank will lift rates one last time at the Fed's next meeting in May, and then cut them three times by the end of the year, according to the .

Those expectations likely reflect an assumption that the economy will tumble into a recession, forcing the Fed to pivot toward lower interest rates.

Waller, however, said that the slow progress on inflation meant that, 바카라 게임 웹사이트�Monetary policy will need to remain tight for a substantial period of time, and longer than markets anticipate.바카라 게임 웹사이트�

Still, Waller did express some optimism, particularly about signs in Wednesday's inflation report that showed rental price growth is finally slowing, after months of sharp gains. The number of new apartments under construction is at historically high levels and vacancies have ticked up, pushing developers to lower rents on new apartment leases.

Waller said as those trends continue to feed into government rental price data, inflation will fall further. By the end of this year it could reach as low as 3% to 3.5%, he said.

Top Fed official sees need for more interest rate increases

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