finance
Fed official says rate hike possible if growth exceeds potential
Federal Reserve official Paulson stated that a rate increase might be considered if economic growth moves above potential or if additional inflation risks emerge. The comments address conditions under which further tightening could be evaluated.
May 19, 7:26 PM·1m read1 source
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Federal Reserve official Paulson said a rate hike might be considered if growth moves above potential or if other inflation risks emerge. The statement outlines specific conditions that could prompt further policy tightening by the central bank.
Paulson indicated that the assessment would depend on incoming data showing sustained growth above the economy's estimated potential output. Additional inflation pressures beyond current levels would also factor into any decision on rates, according to the remarks. The comments come as the Federal Reserve continues to monitor both growth and price stability indicators.
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