Producer prices surge at 6.5% annual pace as Fed officials signal hike
“We're going to need to, in all likelihood, raise rates,” Mary Daly, president of the Federal Reserve Bank of San Francisco, said in a speech.
Federal Reserve officials signaled that further interest rate increases are likely as inflation remains elevated, Reuters reported. San Francisco Fed President Mary Daly expressed her "bias" that the central bank would need to raise its policy rate, citing persistent services inflation moving in the wrong direction. The core Consumer Price Index has risen about 0.3% month over month in the past three months, exceeding the Fed's 2% annual inflation target.
Daly was particularly concerned about services inflation excluding housing, noting that it is not moving in the correct direction. The Federal Reserve raised its benchmark rate by a quarter percentage point in September and held it at a range of 3.75% to 4% in October, with markets expecting quarter-point increases at the December 8-9 and January 26-27 meetings.
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- Fed officials signal further rate hikes as inflation remains elevated economictimes.indiatimes.com
