Monetary policy

Federal Reserve Bank of Atlanta President Raphael Bostic said the U.S. economy can cope with higher interest rates and repeated his support for another jumbo move when the central bank meets later this month.

Federal Reserve Bank of Kansas City President Esther George, who dissented last month against the central bank’s jumbo 75 basis-point increase in interest rates, cautioned that rushing to tighten policy could backfire.

Federal Reserve Governor Christopher Waller said he supports raising interest rates by 75 basis points this month for a second straight meeting and “probably” a 50 basis-point hike at the following gathering in September.

Federal Reserve officials agreed last month that interest rates may need to keep rising for longer to prevent higher inflation from becoming entrenched, even if that slowed the U.S. economy.

Signs of a rapidly deteriorating U.S. economic outlook have spurred bond traders to pencil in a complete policy turnaround by the Federal Reserve in the coming year, with interest-rate cuts in the middle of 2023.

Susan Collins officially took office Friday as the president of the Federal Reserve Bank of Boston, making history in becoming the first Black woman to lead a regional Fed bank.

Federal Reserve Chair Jerome Powell said the U.S. economy is in “strong shape” and the central bank can reduce inflation to 2% while maintaining a solid labor market.

Central bankers must not be complacent about increases in long-term inflation expectations and should act forcefully to curb rising price pressures, said Federal Reserve Bank of Cleveland President Loretta Mester.

Federal Reserve officials will discuss whether to raise rates by 50 basis points or 75 basis points when they meet next month, with the decision being determined by economic data, New York Fed President John Williams said on Tuesday.

Federal Reserve Bank of San Francisco President Mary Daly said she expects the central bank to raise interest rates to levels that restrain the economy.