World

US Federal Reserve’s Top Official Believes Interest Rates Are At Or Near Their Peak

A senior Fed official stated Friday that interest rates in the United States are swiftly approaching if not already at, their highest level in the Federal Reserve’s ongoing battle against inflation.

Since March 2022, the US central bank has raised interest rates 11 times in an effort to contain inflation and bring it back down to its long-term target of two percent.

Although inflation has fallen dramatically in the last 12 months, it remains stuck persistently over the Fed’s target, even growing slightly over the summer, adding to the pressure.

In a statement, New York Fed President, John Williams stated, “My current assessment is that we are at, or near, the peak level of the target range for the federal funds rate”.

“I expect we will need to maintain a restrictive stance of monetary policy for some time to fully restore balance to demand and supply and bring inflation back to our 2 percent longer-run goal”, Williams continued.

Earlier Friday, the key US inflation index used by the Fed to decide interest rates rose again in August, pushed by rising energy prices.

Aside from unpredictable food and energy costs, which continue to hurt Americans at grocery stores and gas pumps, inflation actually fell last month to its lowest annual pace since 2021.

According to CME Group data, futures traders currently assign a likelihood of more than 80 percent that the Fed will keep rates unchanged at its November 1 meeting.

Also read: Russian President Claims Convicts Killed In Ukraine War Have Fully Redeemed Themselves

Spriha Rai

Recent Posts

India Strengthens Fight Against Naxalism; Cuts Affected Districts To Six

Union Home Minister Amit Shah said India has made significant progress in eliminating Naxalism, ensuring…

10 mins ago

Chilean President Hails PM Modi’s Global Influence During India Visit

Chilean President Gabriel Boric hails PM Modi as a key global leader, emphasizing India's rising…

11 mins ago

India Poised For Highest G20 Growth: Moody’s

Moody’s has forecasted India’s GDP growth at 6.5% for 2025-26, maintaining its position as the…

24 mins ago

Nushrratt Bharuccha Shares Her Thrilling Journey With ‘Chhorii 2’

As the sequel to the hit horror film ‘Chhorii’ approaches its release, Nushrratt Bharuccha expresses…

40 mins ago

India’s Defence Exports Reach Record Rs 23,622 Crore In 2024-25

India’s defence exports hit a record Rs 23,622 crore ($2.76 billion) in 2024-25, up 12.04%…

42 mins ago

Passenger & Cargo Traffic On National Waterways Sees Massive Surge

India’s national waterways have witnessed a significant rise in both passenger and cargo traffic over…

54 mins ago