Federal Reserve's Harker: May Need Multiple Interest Rate Hikes to Curb Inflation

Cleveland Federal Reserve President Loretta Mester stated that current inflation has not yet returned to the target level, and the Federal Reserve may need to implement multiple interest rate hikes. She noted that a 25-basis-point rate hike "would not have a significant impact on the economy," but declined to predict the exact number of rate hikes or the final interest rate level. Mester believes the current 3.50%-3.75% interest rate range has not imposed obvious constraints on the economy, and enterprises have not cut growth investment due to high rates, so "now is the time to take action." She added that the longer the wait, the harder it will be for inflation to return to the 2% target. Mester also emphasized that there are no obvious issues in the current job market, and July employment data will not alter her focus on inflation. She holds that the market can only assist the Federal Reserve, not replace it in taking action. Mester voted against keeping rates unchanged at the Fed's July policy meeting, and favored a 25-basis-point rate hike. (Jinshi)