Fed's Barr says future interest rate hikes 'likely' needed to tame inflation
Federal Reserve Governor Michael Barr said Wednesday the central bank will “likely” raise interest rates again to counter persistent inflation, after it did so last week for the first time in three-plus years. Barr, a member of the rate-setting Federal Open Market Committee (FOMC), said the unanimous decision to raise the benchmark interest rate by...
Mounting inflation pressures and a robust economy are leading the Federal Reserve towards additional interest rate hikes, particularly as the country approaches significant national elections, according to traders. On Wednesday, traders were actively positioning themselves for a second consecutive Fed rate increase by late October.
A key indicator of U.S. business activity, the S&P Global flash U.S. Composite PMI Output Index, surged to its highest level since July 2021, reported S&P Global. The survey's measure of prices paid by businesses for inputs reached a near four-year high. Oil prices experienced a significant rise, with Brent crude futures increasing by approximately 2 percent to $101.09 a barrel.
Diesel fuel prices have also surged past $6.50 a gallon due to ongoing tensions in the U.S.-Iran conflict, which continue to disrupt global oil supply. Diesel fuel, in particular, poses a risk of further price pressures as it powers the machinery and trucks essential for producing and transporting goods across the economy. Fed Governor Michael Barr stated on Wednesday that the rising inflationary risks and strong economy likely mean the Fed will implement more rate hikes, as part of a growing trend.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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