The dollar has hit a one-month high after Fed officials signaled a commitment to more rate hikes
Business InsiderSEP 2022
Fed policies take time to be felt in the broader economy, so the central bank should be cautious when deciding its next move. With inflation already easing last month, we should wait to see how the previous rate hikes affect it before adding even more.
The one-month slowing of inflation in July doesn't prove any meaningful cooling of the economy, so the Fed should continue its significant rate hikes in the coming months. Only if you believe inflation will rapidly decline in the near term would you want the Fed to pull back the reins, and that scenario is very unlikely.
© 2025 Improve the News Foundation.
All rights reserved.
Version 6.15.2