Wednesday, 10 August, 2022

Fed official signals to hike interest rates full percentage point

WASHINGTON: US Federal Reserve Governor Christopher Waller signalled Thursday a possible full percentage point interest rate hike -- a move not seen for more than 30 years and a further indication of the Fed's determination to rein in sky-high inflation.

Waller also said that while fears of recession have increased, he believes the economy can avoid a downturn thanks to the strong US job market.

The Fed in March began aggressively raising borrowing costs to try to cool demand that has outpaced supply amid the impact of the Ukraine war and Covid-19 lockdowns in China.