Fed interest rate hikes more in September 2022
FED expected to hike more rate aggressively from about 0.50% to 0.75% in the coming meeting on
September 20-21, 2022
Inflation Slows in July 2022 as CPI rises 8.5% against 9.1% in the prior month June.
The drop in inflation is largely attributable to decreasing gas prices, but rent and food prices have gone up. Inflation is still extremely high.
The FED will keep tightening its monetary policy until price pressures have completely subsided.
Neel Kashkari, President of the Federal Reserve Bank, said the victory over inflation has not yet been achieved.
By year's end and the end of 2023, Neel Kashkari anticipates raising the Fed's policy rate to 3.9 percent and 4.4 percent, respectively.
Mary Daly, President of the San Francisco Fed, has not ruled out a third consecutive rate increase of 0.75 percentage points at the September policy meeting.
Many economists anticipate that the FED will raise interest rates by 50 to 75 basis points for the third time in a row at its policy meeting on September 20–21.