The head of the Federal Reserve Bank of St. Louis believes that the rate increase in December was superfluous


The head of the Federal Reserve Bank of St. Louis, James Ballard, in an interview with Bloomberg, expressed the opinion that perhaps in December it was not necessary to raise the rate on federal credit funds. After raising the base interest rate by 0.25 percentage points in December, the US Federal Reserve decided to postpone further steps in this direction, as internal and external risks increase and inflation falls short of the target 2%. In his opinion, it is now too early to talk about a rate cut. However, if the US economy exceeds forecasts, then it will be advisable to lower the rate by 0.25 percentage points. At the same time, according to the chairman of the Federal Reserve Bank of Boston, Eric Rosengren, the current level of the rate slightly stimulates GDP growth and helps approach the target level of inflation. He believes that the rate should remain at the current level.

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