The Federal Reserve may need to raise US interest rates and leave them at a higher level for “some time” to curb inflation, the central bank governor has said.
Speaking at the IMF's 2023 Annual Meeting in Marrakesh, Fed governor Michelle Bowman said inflation still has not climbed down enough from when it peaked at 9.1 per cent last summer.
The Fed has raised interest rates 11 times to its current target range of 5.25 to 5.50 per cent since March 2022 to rein in soaring consumer prices.
Headline and core inflation have both moderated since then. The Personal Consumption Expenditures (PCE) Price Index rose – the Fed's preferred inflation gauge – 3.5 per cent on an annual basis last month. Core PCE is currently at 3.9 per cent, its lowest level in two years.
“However, inflation remains well above the FOMC's 2 per cent target,” Ms Bowman said, referring to the Federal Open Market Committee, which votes on the central bank's monetary policy decisions.
The Fed governor singled out strong consumer spending and the resilient labour market as roadblocks the Fed still must overcome in its inflation battle. The economy added 336,000 jobs last month, showing that the jobs market still remains strong in the face of rising borrowing costs.
“This suggests that the policy rate may need to rise further and stay restrictive for some time to return inflation to the FOMC's goal,” Ms Bowman said.
The Fed governor's remarks in Marrakesh were toned down compared to the more hawkish stance she took in August, in which she expected several additional interest rate increases would be needed to curb inflation.
Other Fed officials have recently indicated that more rate increases will not be likely, pointing to higher Treasury yields.
Ms Bowman did not say how she might vote when the FOMC convenes later this month. The Fed skipped raising rates in its most recent meeting.
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The schedule
December 5 - 23: Shooting competition, Al Dhafra Shooting Club
December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq
December 11 - 20: Dates competition, from 4pm
December 12 - 20: Sour milk competition
December 13: Falcon beauty competition
December 14 and 20: Saluki races
December 15: Arabian horse races, from 4pm
December 16 - 19: Falconry competition
December 18: Camel milk competition, from 7.30 - 9.30 am
December 20 and 21: Sheep beauty competition, from 10am
December 22: The best herd of 30 camels
MATCH INFO
Manchester City 3 (Sterling 46', De Bruyne 65', Gundogan 70')
Aston Villa 0
Red card: Fernandinho (Manchester City)
Man of the Match: Raheem Sterling (Manchester City)
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
Company%20profile
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F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Killing of Qassem Suleimani
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
The five pillars of Islam
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
