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Fed Holds Tight: No Urgency for New Rate Hikes
14 Oct
Summary
- Fed Vice Chair Bowman sees no immediate need for further rate hikes.
- The central bank raised rates by a quarter point last month.
- Bowman also addressed capital for data centers and Fed reorganization.
US Federal Reserve Vice Chair Michelle Bowman stated on Wednesday that the central bank is not feeling any urgency to take further action regarding interest rates.
Bowman indicated that the Fed has sufficient time to observe how financial markets and the broader economy develop following its September rate increase. She believes a period of observation is necessary before making any new decisions.
The Federal Reserve had implemented a quarter-percentage-point rate hike in the preceding month, setting its policy rate within the 3.75%-4.00% range. This move was part of ongoing efforts to manage inflation.
In addition to monetary policy discussions, Bowman also addressed the financial requirements for data centers, noting the need for adequate capital to support the future economy. Furthermore, she called for a significant reorganization of the Fed's supervisory functions and accountability measures, particularly in light of the Silicon Valley Bank's failure.
