According to a Fed meeting on this July 26-27, a senior Federal Reserve official has signaled that the Fed may raise interest rates by more than 75-Basis-Pointer as much as 1% at this month’s meeting. After the US inflation numbers rose above expectations. The Thai currency is likely to become weaker against the US dollar due to the policy interest rates vary greatly.
The US Department of Labor said The Consumer Price Index (CPI), a measure of inflation based on consumer spending, jumped 9.1 percent in June year on year. It was also the highest level in 40 years. The figure was also above the 8.6 percent in May and above the 8.8 percent expected by analysts.
The US Department of Labor said Nonfarm payrolls in June increased by 372,000, topping the 250,000 estimates.
And the unemployment rate remained at 3.6% in line with analysts’ estimates.
St. Louis Fed President James Bullard interviewed reporters in Florida. After the June CPI index was released on Wednesday (July 13), when reporters asked. Higher-than-expected inflation numbers Will the Fed tend to raise interest rates to 1% or not, which Mr. Bullard replied. “Everything can happen.”
Cleveland Fed Chairman Loretta Mester also spoke to Bloomberg Television on Wednesday. She declined to support the Fed’s interest rate hike at this month’s meeting. but said Considering the inflation data that has been released at the moment. She said there was no reason for the Fed to raise interest rates less than the 0.75% level raised at its June meeting.
Ms. Mary Daly, chairman of the San Francisco Fed. in an interview with the New York Times that “It is very likely that The Fed will raise interest rates by 0.75% after higher-than-expected inflation data. Previously, I expected the CPI index to come out quite high. But I didn’t think it would be this high. This is very bad news.”
Bloomberg News reported that Investors are now predicting that it is more likely that The Fed will raise interest rates 1% at its meeting on July 26-27, the worst rate hike since the early 1990s.
While Nomura’s analyst team Security International, it is expected that The Fed will also raise interest rates to 1% at its meeting this month.