Federal Reserve Likely Not Finished With 2023 Rate Hikes

Federal Reserve Likely Not Finished With 2023 Rate Hikes

Federal Reserve , Likely Not Finished With , 2023 Rate Hikes.

NBC reports that another rate hike by the Federal Reserve could be coming in September as the Fed continues to fight inflation.

According to Michelle Bowman, a member of the Board of Governors of the Federal Reserve System, , "additional rate increases will likely be needed to get inflation on a path down to the FOMC’s 2 percent target.”.

According to Michelle Bowman, a member of the Board of Governors of the Federal Reserve System, , "additional rate increases will likely be needed to get inflation on a path down to the FOMC’s 2 percent target.”.

Bowman reportedly cited persistently high inflation, increased consumer spending, a rebounding housing market and a strong labor market as pushing rates higher.

Bowman reportedly cited persistently high inflation, increased consumer spending, a rebounding housing market and a strong labor market as pushing rates higher.

She added that the Fed's monetary policy is not on a "preset course," stressing that data will determine future decisions on rate hikes.

We should remain willing to raise the federal funds rate at a future meeting if the incoming data indicate that progress on inflation has stalled, Michelle Bowman, Member of the Board of Governors of the Federal Reserve System, via NBC.

NBC reports that Bowman's comments suggest that the Fed will have to increase the rate above the 5.6% that policymakers established in a late-July meeting.

The recent lower inflation reading was positive, but I will be looking for consistent evidence that inflation is on a meaningful path down toward our 2 percent goal as I consider further rate increases and how long the federal funds rate will need to remain at a restrictive level, Michelle Bowman, Member of the Board of Governors of the Federal Reserve System, via NBC.

I will also be watching for signs of slowing in consumer spending and signs that labor market conditions are loosening, Michelle Bowman, Member of the Board of Governors of the Federal Reserve System, via NBC.

On August 4, the Labor Department released its monthly job report, showing that hiring had slowed in June while unemployment lingered at 3.5%.

However, NBC reports that Bowman also noted that there are still not enough workers to fill the number of available jobs.