The Federal Reserve is getting interest rates closer to where they need to be to win the battle against inflation, a pair of U.S. central bankers said on Friday, though neither gave a clear signal on whether they feel they have reached that point.
Coming a week after Fed policymakers raised their target range for the benchmark rate to 5%-5.25%, the remarks – from Fed Governor Philip Jefferson and St. Louis Fed President James Bullard — suggest some uncertainty about whether the Fed will in fact pause interest-rate hikes next month, as is widely expected.
Indeed a third U.S. central banker speaking early in the day, Governor Michelle Bowman, signaled she feels further policy tightening may yet be appropriate, unless inflation drops more convincingly.
Read More : Fed policy receives support from officials, yet inflation remains a concern