Federal Reserve official Hammack said interest rates should be raised to restrain economic growth and inflation. This was reported by Qazaqyia.kz citing Reuters.
According to Hammack, the current economic situation requires higher rates, which would help control inflation and prevent the economy from overheating. He emphasized the importance of these measures for long-term stability.
This stance by the Fed could affect market expectations, as investors and analysts anticipate further tightening of monetary policy. Hammack's statement highlights the need to restrain economic growth, aimed at reducing inflationary pressures.
According to Reuters, this opinion was expressed during discussions among Fed members. Hammack's position is seen as one of those supporting the central bank's course towards tightening monetary policy.
Economists view this statement as a factor increasing the likelihood of rate hikes at upcoming Fed meetings. However, the final decision will depend on economic indicators and inflation dynamics.