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MNI INTERVIEW: Fed Might Hold Longer Than Market Thinks-Bair

MNI interviews former FDIC chair in 100th episode of FedSpeak Podcast.

The Federal Reserve could have to keep interest rates higher for longer than investors think, perhaps into next year, because inflation is proving more stubborn than previously thought and as fiscal policy works against the tight monetary stance, former FDIC Chair Sheila Bair told MNI.

“They’re wise to keep the priority on fighting inflation. The data just isn’t there yet to have confidence that this is a sustainable trajectory to 2%,” said Bair, who chaired the FDIC from 2006-2011, speaking in the latest episode of MNI’s FedSpeak Podcast.

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The Federal Reserve could have to keep interest rates higher for longer than investors think, perhaps into next year, because inflation is proving more stubborn than previously thought and as fiscal policy works against the tight monetary stance, former FDIC Chair Sheila Bair told MNI.

“They’re wise to keep the priority on fighting inflation. The data just isn’t there yet to have confidence that this is a sustainable trajectory to 2%,” said Bair, who chaired the FDIC from 2006-2011, speaking in the latest episode of MNI’s FedSpeak Podcast.

Keep reading...Show less