during his press conference. with us inflation running still well above the bank s 2% target, it sjob is not yet done. i think, as anyone can see, not a single person on the committee wrote down a rate cut this year, nor do i think it is at all likely to be appropriate if you think about it. inflation has not really moved down. it has not so far reacted much to our existing rate hikes, and so we re going to have to keep at it. most officials think two more rate hikes are needed this year, starting perhaps as early as next month. wednesday s decision ushers in a new phase in the fed s battle to lower prices follows a path carved out by central banks in countries such as australia and canada, which recently announced rate hikes following a break. michelle fleury there in washington, dc. the latest decision by america s central bank comes at a time when inflation is slowing but not as quickly as the federal reserve wants it to be. earlier, i spoke to blerina uruci of t.rowe pric
chair to powell made clear during his press conference with us inflation running still well above the bank? 2% target, and itsjob is not yet done. figs and its job is not yet done. as an one and itsjob is not yet done. sis anyone can and itsjob is not yet done. is anyone can see, not a single person wrote down a rate cut this year, not i think it is at all likely to be appropriate if you think about it. inflation has not really down, it has not so far reacted much to our existing rate hikes, and so we re going to have to keep at it. ~ .,, we re going to have to keep at it. most officials think two rate heights it. most officials think two rate heights are it. most officials think two rate heights are needed . it. most officials think two l rate heights are needed this year, perhaps starting as early as this month. wednesday s decision ushers in a new phase to battle prices and follows a path carved out by central banks in countries such as australia and canada which rece
that the economy and markets can absorb it more gradually, so that they can keep the path to a soft landing still alive. the last time we spoke was last month and there was a banking crisis that was going on. where do we stand? how much of that are they still considering, the fed? i think this remains something that they monitor very closely. we they also have the treasury general account rebuild this summer, which means there will be some liquidity being drained out of the financial system here in the us, but when you look at the data, the tightening in credit conditions has not been that much more significant than it was before the banking crisis, and we re not seeing the events of march play out into the real economy as a big struck and actually this was a pretty special meeting for the fomc where they revised their set of forecasts, so as they told us injune, they have a better view of the economy going forward, their outlook for growth and the labour market is more optimistic than
still considering? i think this remains something that - still considering? i think this| remains something that they monitor very closely, and they also had that treasury general account which means there will be some liquidity being drained out of the financial system here in the us, but when you look at the data, the tightening and credit conditions has not been that much more significant than it was before the banking crisis, and we re not seeing the events of march play out the real economy is a big struck and actually this was a pretty special meeting where they arrived with a set of forecasts, so they told us in june that they have a better view of the economy going forward, there are outlook for growth and the labour market is more optimistic than it was in march, and that s why i think they now share this collective view that the need to do more tightening and monetary policy. we needed we were worried for quite some time about a recession in the world s biggest economy. is