Fed meeting september 2022

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WASHINGTON, Sept 9 (Reuters) - Federal Reserve officials on Friday ended their public comment period ahead of the U.S. central bank's Sept. 20-21 policy meeting with strong calls for another oversized interest rate increase to battle high inflation. "Based on what I know today, I support a significant increase at our next meeting ... to get the policy rate to a setting that is clearly restricting demand," Fed Governor Christopher Waller told the Institute for Advanced Studies in Austria. While he did not explicitly call for another three-quarters-of-a-percentage-point hike at this month's meeting, his comments leaned in that direction. Waller noted he was not convinced that inflation was yet "moving meaningfully and persistently downward," while fears about an economic recession were receding. As other Fed officials have begun to emphasize, Waller said that even as prices for goods moderate, it is less clear when the costs of services will slow. He said rising rents will continue to push inflation higher also. Fed policymakers will receive a final round of monthly inflation data on Tuesday ahead of their meeting. But officials this week downplayed the importance of any single data point, and emphasized their determination to keep raising rates until there is a sustained drop in inflation, which has been running at 40-year highs. While the economy has slowed somewhat under the influence of the Fed's aggressive monetary tightening - it has lifted its benchmark overnight inte...

• • • News • • • • • • • • • • • • • • • • Specialists • • • • • • • • • • • • Coronavirus • • • Weather • • • • • • • • • • • • • Sports • • • • • • • • • • • Business • • • • • • • • Opinion • • • • Consumer • • • • • • • • • Health • • • • • • • • • Life • • • • • • • • • • • • • Out & About • • • • • • • • • Video • • • • • • • • • • • • • • • Since March 2022, Fed officials have raised the central bank’s benchmark interest rate 10 times in a row in an attempt to cool the US economy and battle inflation that is still double the Fed’s target. The Fed’s post-meeting statement confirmed that officials deem the pause a prudent move, but most officials think additional hikes are necessary this year, according to the Fed’s latest Summary of Economic Projections. “Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,” the statement said. Most officials estimate the federal funds rate will top out at a range of 5.63-5.87% in 2023, suggesting there will be at least one more rate hike this year, if not more, depending on the size of each hike. Future policy moves depend on what economic indicators show in the coming weeks and months, including the resilient job market. Payroll growth remains solid, as do wage gains, which put some upward pressure on prices. Top economists argue the still-tight labor market will prove to be a stubborn source of inflation that would need to rebalance in order...