US Fed officials endorse higher interest rates
US Federal Reserve officials have stated that raising interest rates is currently necessary to lower inflation to the 2% target, despite some members opposing the decision at the recent meeting. They emphasized that inflation has remained high for more than five years and that raising rates would restrict economic activity and ease inflationary pressures, with the economy capable of handling higher interest rates. Among the officials, Cleveland Fed President Loretta Mester and Minneapolis Fed President Neland Kashkari expressed the need for gradual tightening of monetary policy in response to developments in inflation and employment. Additionally, Dallas Fed President Lori Logan supported raising the interest rate by a quarter percentage point from the current levels of between 3.50% and 3.75%.
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