Yingwei Financial Investing – On Friday, Federal Reserve official Neel Kashkari said a strong U.S. jobs report could lead to more rate hikes by the Fed.
He said in an interview that he expects the federal funds rate to peak next year or higher than the September forecast. However, he declined to give his forecast for the peak federal funds rate next year.
Kashkari said the data showed that U.S. hiring has been very strong in recent months. “We have more work to do to try to cool the economy and bring supply and demand into balance.”
He pointed out, “In March and April of this year, I predicted that interest rates would peak in September and eventually peak at around 4.9%. But now, I expect interest rates to peak higher, but how much higher, I don’t know. Clear.”
He also said that, in his view, it is not impossible for the Fed to raise interest rates by another 75 basis points in December. But he also mentioned that the Fed has repeatedly raised interest rates sharply to suppress inflation, and it is appropriate to consider slowing the pace of interest rate hikes now.
The U.S. jobs report for October released on Friday showed that the U.S. nonfarm payrolls increased by 261,000 in October, beating expectations for an increase of 200,000.
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(Editor: Chen Han)