The economy is close to achieving full employment, which may trigger a few interest rate hikes.
BloombergMarkets reports that Federal Reserve Bank of Atlanta President Dennis Lockhart said that the Fed has room for two more rate increases this year.
The Fed raised the target for the benchmark rate by a quarter point to 0.75 percent to 1 percent earlier this month.
“The committee is pretty solidly optimistic about the outlook for at least the medium term, and that would be the continuation of a moderate pace of growth,” Lockhart said. “It’s appropriate to begin to remove a little bit of the ultra-accommodation.”
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady