The markets quickly recalibrate the preliminary ratings of an imminent rate drop as jets expect in Jackson Hole for the economic symposium of the Kansas City Fed.
Current data does not argue for a September facility, said Cleveland Fed president Beth Hammack, speaking with Yahoo News in Wyoming.
“We have too high inflation and that tends to increase in the past year,” she said. “If the meeting was tomorrow, I would not see a case to reduce interest rates.”
It also argued that the number of inflation begins to show the impact of prices and that the full effect would only be seen next year.
Hammack’s comments are notable, showing that the president of the Fed, Jerome Powell, continues to have a lot of support in his bellicist position despite two votes dissolved at the last meeting of the Central Bank policy and the continuous campaign of President Trump for lower rates.
His remarks also come after a series of potential Powell replacements has appeared on the waves in recent days to defend highly lower interest rates. The last this morning was the former boss of the Fed of St. Louis, Jim Bullard, who pleaded for the 100 -point political prices below the current level.
Barely a week ago, Bitcoin hit a record greater than $ 124,000 alongside an expectation of almost 100% that the Fed cuts the rates next month. Seven days later, these chances returned to 71%, according to CME Fedwatch and Bitcoin plunged almost 10% for current $ 112,800.
The markets will be able to hear Powell himself during his opening speech on Friday morning and at this stage, it is almost certain that he will not become Dove. Instead, it is likely to emphasize that inflation continues to remain too hot and therefore the need to adopt a waiting approach to adjust monetary policy.
