WASHINGTON -The US Federal Reserve’s united front against inflation could be harder to hold together going into the next hike in September, with strong economic data and falling inflation figures fueling disagreement over the best path forward.
Analysts are divided ahead of the Fed’s next decision in September, with the so-called “hawks” predicting additional rate hikes in the face of strong economic data, and “doves” expecting an end to the current hiking cycle given recent inflation data.
Thursday’s GDP figure for the second quarter came in above analysts’ expectations, a day after the Fed voted unanimously to hike its benchmark lending rate to its highest point for 22 years.
The US central bank also left the door open to additional rate hikes, if needed, to get inflation down to its long-term target of two percent.
“It’s really a question of how do you balance the two risks: the risk of doing too much or doing too little,” Fed chair Jerome Powell told reporters after the latest Fed decision was announced on Wednesday.
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Source: business.inquirer.net
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