Cleveland Federal Reserve Bank President Mester (October 6) said that the U.S. unemployment rate may rise slightly as Fed (FED) raises interest rates, but that will not prevent central bank from performing its top priority against inflation .
Mester said that FED must focus on the issue of inflation . If you want the economy to resume normal development, this is something that must be done.
Bloomberg reported that Mester said Thursday that FED must raise interest rates to a level that can reduce inflation to 2%, and she has not seen the necessary strong data that FED may start to slow down the rate hike in .
Mester pointed out that compared with the European and American markets, FED's balance sheet reduction work has been progressing smoothly so far, and FED should not cut interest rates next year.
New York Times reported on Thursday that Richmond Federal Reserve Bank President Tom Barkin said in an exclusive interview that whether FED can achieve a soft landing is not a topic he is concerned about, and what he cares about is whether US inflation can drop to its target level.
San Francisco Fed President Mary Daly said in an exclusive interview with the New York Times this week that the data will determine the rate hikes in the next two interest rate meetings should be three codes, one code or two codes each.
Thomson Reuters reported that Daley said on Tuesday that Europe fell into recession or China's retardation will have a headwind for the US economy. The impact of FED rate hikes on global economy will eventually affect the domestic economy of the US. FED must take this into consideration to avoid excessive tightening of monetary policy.
Some people question whether the Fed's current practices are similar to those in 1979, when Fed Chairman Walker calmed inflation through a series of historic interest rate hikes, but it caused a two-year recession, during which the U.S. unemployment rate reached 10%.
Some analysts predict more rate hikes, and financial markets have already adjusted in advance the possible announcement of interest rate hikes in November.
Bill Zox, portfolio manager at Brandy Global Investment Management, told Bloomberg that he doesn't think the Fed has yet to stop or turn.
United Nations also made a stand on this issue, and the organization warned that the U.S. rate hike may lead to a global economic recession, which is particularly harmful to developing countries and lead to a global stock market crash.
United Nations Conference on Trade and Development (UNCTAD) said that the monetary austerity policy of the United States, the United Kingdom and the European Union is a "reckless gambling" that may have dangerous countereffects. UNCTAD pointed out that the cause of high inflation is not so much an over-demand demand for goods and services as well as a lingering trade problem and rising food and energy prices.
HSBC 's Mach also pointed out that the Federal Reserve's tough measures have made global investors tend to the US dollar in search of safe havens. Over the past year, the dollar has strengthened against most other currencies, which has exacerbated inflation in the rest of the world, as many commodities, including oil, are priced in the U.S. dollar. "Overage currency weakness in turn can create other pressures, such as pressure from imported goods," Mach said.
