Interest rate messages from Fed officials

Recent speeches by Fed members revealed that there are different ideas within the Fed on whether to hike interest rates in June or hold steady. New York Fed President John Williams indicated that the impact of the current interest rate steps should be evaluated, signaling that he is closer to a “wait-and-see” approach. Williams said, “We recognize that it will take a certain amount of time for our previous steps to have an impact.” Dallas Fed President Lorie Logan said, “A slower tightening may be needed.” Logan stated that gradual policy adjustments, which refer to more intermittent and low-rate interest rate hikes, could be useful in combating inflation and striking a balance between financial conditions. Richmond Fed President Thomas Barkin, who struck the most hawkish tone among Fed members speaking yesterday, said he would be “comfortable” about raising interest rates further if necessary. Speaking to Bloomberg TV, Barkin said, “I would like to see the delayed effects of rate hikes, but I also want to see inflation fall.” Chicago Fed President Austan Goolsbee said it was too early to talk about a June interest rate decision.