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FED: Too early to think about interest rate cut by 2023

06 October 2022 08:23 (UTC +04:00)

It is too early to count on a US interest rate cut by next year as the central bank has barely won its mission of fighting inflation raging at four-decade highs, Federal Reserve Bank of Atlanta President Raphael Bostic said, APA reports citing USA Today.

"The fight against inflation is still in its early stages," Bostic said in a live-streamed discussion on the economy on Wednesday. Asked whether an interest rate cut was possible by 2023, he replied: "Not so fast."

Fed Vice Chair Lael Brainard said last week that US inflation remained at a "very high" level and could continue to shock Americans.

The Fed’s preferred inflation indicator, the Personal Consumption Expenditures (PCE) Index, grew 6.2% during the year to August, versus 6.3% in the 12 months to July.

Economists polled by US media had expected the so-called PCE Index to expand by just 6% during the year to August.