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MNI INTERVIEW: Good Chance Fed Won't Cut Rates In 2024-Plosser

(MNI) WASHINGTON

MNI speaks with ex-Philadelphia Fed President.

Federal Reserve officials should prepare investors for the possibility that the central bank might need to keep interest rates at 23-year highs until next year because inflation might stick around 3% through year end, former Philadelphia Fed President Charles Plosser told MNI.

He said the neutral rate has likely increased significantly in recent years, which means Fed policy is currently less restrictive than policymakers believe.

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Federal Reserve officials should prepare investors for the possibility that the central bank might need to keep interest rates at 23-year highs until next year because inflation might stick around 3% through year end, former Philadelphia Fed President Charles Plosser told MNI.

He said the neutral rate has likely increased significantly in recent years, which means Fed policy is currently less restrictive than policymakers believe.

Keep reading...Show less