🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Fed officials hint at potential economic slowdown despite strong growth

Published 11/10/2023, 12:56 AM
FED
-
US10YT=X
-

Federal Reserve officials, Thomas Barkin and Raphael Bostic, have expressed concerns over the potential for an economic slowdown in the United States, despite recent robust growth data. Their comments were made at a fireside chat in New Orleans on Thursday, signaling that the economy may not have fully absorbed the impact of past rate hikes.

Bostic, who is known for his dovish policy stance and serves as the Atlanta Fed President, stated that he believes the current Federal Reserve policy is restrictive enough to curb inflation. He warned of imminent economic instability but committed to maintaining this stance until inflation reaches a target of 2%.

On the other hand, Richmond Fed President Thomas Barkin, known for his hawkish views, predicted an economic downturn. Barkin's forecast contradicts recent strong Q3 growth data. He argued that a slowdown is necessary to demonstrate to price-setters their diminishing influence on prices.

These remarks come as the Federal Reserve contemplates further increases in interest rates, despite them being at a 22-year high of between 5.25% and 5.5%. This contemplation goes against market investors' expectations, who predict no further increases.

Later today, the financial sector is keenly awaiting a speech by Fed Chair Jerome Powell at an International Monetary Fund (IMF) conference in Washington. The speech could provide further insights into the Federal Reserve's future monetary policy direction amidst these diverging viewpoints from its officials.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.