Fed senior officials said that if inflation continues to rise, a significant increase in the benchmark interest rate should be considered.
As the Federal Reserve continues to express its intention to continue tightening monetary policy, there are also concerns that the radical rate hike may trigger an economic recession.
On October 12 (local time), according to FX Street, Financial Times (FT) and other foreign media reports, Federal Reserve Director Michel Boman said on the same day: " inflation is too high." "If you want to achieve the goal of price stability and full employment on a sustainable basis, I believe that reducing inflation to the target level is a necessary condition."
He also said: "If you don't see it, you will also say: "If you don't see it, you will also say: " When the signs of a decline in inflation, the benchmark interest rate should continue to be raised significantly. "
Boman said: "In order to continue to reduce inflation, we need to raise the benchmark interest rate to a limiting level and stay at this level for a period of time.
"The inflation risk has not changed much," he said. "It is still at a high level and we are not sure when it will peak." But if inflation drops, I think it can slow down the rate of rising interest rates. "
Boman's speech is consistent with the minutes of the regular meeting of the Federal Open Market Committee (FOMC) last month, which reiterated the position of Fed officials to significantly raise interest rates and expressed concerns about high inflation.
In the public minutes, most Fed people said: "The cost of taking too few measures in reducing inflation may be greater than the cost of taking too many measures." Neil Cassicari, president of the Federal Reserve Bank of Minneapolis (Fed), said in his speech that day, "If the economy suddenly falls and inflation falls, we can stop what we are doing and convert when necessary, but we see no signs.
Some people criticized the Federal Reserve for hikes in a sharp interest rate, dragging the global economy into recession.
EU (EU) Diplomatic and Security Committee Chairman Joseph Borell said at a ceremony to invite the EU ambassador on October 10, "Everyone should follow the Federal Reserve because otherwise the country's currency will depreciate." ”
He went on to emphasize: “All central banks are running to raise interest rates, which will push the whole world into recession. "
The Financial Times said that Borrell's speech was not cautious, but "the EU also ignored the suggestions of other countries and tried to output its own governance models and standards, which is at fault."
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