Kuttner said they range from almost 3% to more than 5%. Kuttner, who worked at the Fed for more than ten years, said, “I cannot recall a time when we have seen such wide disagreement in terms of the appropriate monetary policy setting.”Īt last month’s meeting, the Fed released officials’ predictions for where interest rates are headed over the next few years. Brainard did not say how much she thinks the central bank should raise rates at its next meeting.įed watchers like former Fed Economist Ken Kuttner are trying to make sense of it all. “Inflation remains high and policy is going to need to remain sufficiently restrictive for some time to make sure it gets down to 2% for a sustained basis,” Brainard said. But she stressed the central bank isn’t letting up. In her own speech last Thursday, Fed Vice Chair Lael Brainard acknowledged there are a “range of views” on some aspects of inflation. Several others said they would vote for a smaller 0.25% rate hike. ![]() Two regional Fed bank presidents argued for a 0.5% increase like the one in December. The Fed’s debate over how high interest rates should go at its next meeting spilled out in public last week. There are disagreements over the direction of the economy - and how the Fed should respond. ![]() Federal Reserve officials acted pretty much in lockstep last year as they kept voting to raise interest rates in an effort to cool off the economy and douse inflation.īut some cracks are appearing in that united front as the Fed prepares for another interest-rate meeting next week.
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