Federal Reserve officials have indicated they are gravitating toward another 0.75-percentage-point rate rise at their July 26-27 Federal Open Market Committee meeting, even as they have faced questions about their willingness to do more than that to bring down high inflation. Central bankers have signaled they will do whatever it takes to lower inflation that is now running above 9%, but at least one policy maker is worried about how the economy will respond to a series of large rate rises. Here is a roundup of Fed officials’ comment on monetary policy since their mid-June FOMC meeting.
Chairman Jerome Powell (voter)
June 29, European Central Bank conference
“Is there a risk we would go too far? Certainly there’s a risk…The bigger mistake to make—let’s put it that way—would be to fail to restore price stability.”
