BlockBeats news, on August 28, according to Bloomberg, prior to Federal Reserve Chair Powell's speech at the Jackson Hole symposium, several Fed officials signaled differing views on inflation and interest rate prospects, with the main divergence centered on whether current rates have imposed sufficient restraint on the economy.
Kansas City Fed President Jeff Schmid believes that short-term interest rates may still be accommodative, and the Fed still has work to do. Cleveland Fed President Beth Hammack similarly stated that current interest rates are not restrictive enough to cool the economy; further policy tightening is needed to bring inflation down to 2% within a reasonable timeframe.
Boston Fed President Susan Collins stated that current interest rates are "moderately restrictive." Chicago Fed President Austan Goolsbee said it is acceptable to wait for more inflation data, but he would be concerned if service-sector inflation remains high or rises again.
The U.S. PCE price index rose 3.7% year-over-year in July. Interest rate futures indicate the market expects a 36% probability of a Fed rate hike in September. The Fed held the federal funds rate at 3.5% to 3.75% in July, with three officials supporting a rate increase. Waller is scheduled to speak at 22:00 Beijing time on August 28.