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Expectations are more than tripling in the US up this year

More and more Federal Reserve officials and economists at Wall Street are opening up opportunities to continue predicting inflation this year as U.S. central bank tries to curb rising inflation.

Key policy makers and business executives have laid the groundwork “lift-tof ”of high interest rates from zero at the March points meeting. Provides new evidence that inflation – running at its highest rate in almost 40 years – it is broad and rising, with increasing signs that the labor market is recovering rapidly.

But last week – when Jay Powell, chairman, said inflation was “high risk”To economic interest rates – support for the Fed to move stronger afterwards.

“The rate at which the Fed returns to normalcy is the lowest for a healthy economy,” said David Kelly, chief executive officer at JPMorgan Asset Management. “It looks like we’re going to see more than three rounds.”

Last month, public interest rates published by members of the Federal Open Market Committee and regional branch presidents showed a three-fold increase in inflation in 2022. Now, expectations are increasingly increasing with a four-fold increase in prices.

Although Christopher Waller, the Fed’s new governor, said the threefold change this year was still “a good start”, he said. he urged Thursday that an increase of four or even five prices would be appropriate if inflation remains high.

Waller, who appears to be one of the most hawkish members of the FOMC, joined James Bullard of St Louis Fed, who has been helping the Fed move aggressively to curb rising consumer prices. Bullard, who is a voting member of the decision-making committee this year, he said Wednesday estimates the central bank should raise prices four times by 2022.

Some Fed officials have also expressed interest in speeding up the repatriation of Fed facilities, with Patrick Harker, President of the Philadelphia Fed branch, to say Financial Times this week that it will be open to more than triple this year as inflation figures call it “worst” worsening.

Charles Evans of the Chicago Fed added that the four reforms could be justified if inflationary pressures do not move “quickly”.

Wall Street economists have followed suit, adjusting their forecast to meet the Fed’s policy plan this year.

Morgan Stanley on Thursday raised his hopes for a four-year four-year increase this year, which Robert Rosener, a US economist, said was indicative of a Fed that “wants to change to respond to what it is”.

Jay Bryson, an economist at Wells Fargo, also revised his predictions, warning that “throughout the year, the Fed will continue to be shocked by rising prices”.

Financial analysts at Goldman Sachs and RBC Capital Markets also recorded four changes. Looking at the controversy on Friday, Jamie Dimon, chief executive of JPMorgan, said he saw “good luck” there would be more than four movements, with a possibility of six or seven.

“The whole idea of ​​maybe being nice and calm and no one would be surprised, I think I’m wrong,” he said in a bid for banking in the fourth quarter.

Officials are also discussing how to speed up the $ 9tn interest rate increase, with several policymakers working to reduce the rate immediately after interest rates rise.

Details of his movements should be clarified in the next few meetings, but John Williams, President of the New York Fed, said on Friday he supported a “clear” approach that would not “disrupt” the financial markets and “the futility”. ‘There needs to be a lot of change along the way’.

Raphael Bostic, President of the Atlanta Fed, this week he sat down the first chief to call the number, calling for monthly central bank fees to be reduced by at least $ 100bn.

Additional reports of Joshua Franklin in New York


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