- Fed Governor Michael Barr said policymakers should raise rates decisively if inflation does not show convincing progress toward the 2% target.
- Markets were pricing roughly a 66% chance of a Fed rate increase this month, according to CME Group’s FedWatch tool, as Treasury yields climbed.
- ECB Governing Council member Gediminas Simkus said the data point to a September hike but that the increase would not be sufficient to return inflation to target.
Quotes
“If trends in the data give me some confidence that inflation is moderating on a path to 2%, then I think we can take a bit more time to assess our policy stance”
“However, if inflation appears not to be moderating sufficiently, then I think we should act decisively to raise rates.”
“All the data currently available lead me to think that it’s very likely that we will hike, and that this September hike is not going to be enough”