Federal Reserve Barkin: inclined to support the Federal Reserve to raise interest rates by 25 basis points

On February 17, the Federal Reserve Balkin said that he was inclined to support the Federal Reserve to raise interest rates by 25 basis points; Due to seasonal adjustment, the recent employment growth and retail sales data have not brought much signals; I feel that the progress of the United States in controlling inflation is “slow”; Excessive savings, fiscal expenditure and employers’ idea of retaining workers may offset the impact of the Federal Reserve’s interest rate increase; Controlling inflation will require more interest rate increases. As for how much to increase, follow-up evaluation is needed; At the last monetary policy meeting, he supported the Federal Reserve to raise interest rates by 25 basis points; Still not ready to declare victory against inflation; We hope to see inflation fall back to the inflation target of 2%.

Interpretation of this information:

The Federal Reserve Governor Lael Brainard commented on the potential for an interest rate hike by 25 basis points in February. Brainard stated that the recent employment growth and retail sales data have not brought significant signals. In addition, he expressed concerns that the United States’ progress in controlling inflation is slow. He believes that the excessive savings, fiscal expenditure, and employer’s tendency to retain workers could offset the impact of the Federal Reserve’s interest rate increase. To control inflation, more interest rate hikes will be necessary, but the amount of increase will require further evaluation. Brainard supported the previous 25 basis points interest rate increase by the Federal Reserve but still sees the task of managing inflation as incomplete. Ultimately, the goal is for inflation to fall back to the target of 2%.

The three keywords for this message are interest rate, inflation, and progress. Brainard’s comments focus on interest rates as a tool to control inflation, as he highlights a “slow” progress in managing inflation rates. While Brainard supported the previous interest rate hike, he notes that more increases will be necessary, indicating a potential shift in monetary policy. Finally, Brainard’s comments point to the challenge of managing inflation for the United States economy.