INSUBCONTINENT EXCLUSIVE:
NEW YORK: The Fed should slow its pace of policy normalisation to help re-align price expectations around 2 per cent and maintain the
credibility of its inflation target, Federal Reserve Bank of St
inverting the yield curve, an outcome that markets could interpret as signalling an impending economic downturn.His comments come ahead of a
cent target.
He repeated his stance that the central bank should avoid raising interest rates at a pace that pushes up short-term rates
this issue after he got its implications wrong in 2000 and 2006.
Dallas Fed President Robert Kaplan and Atlanta Fed President Raphael Bostic
Investors expect a hike in June, though the outlook for increases in the second half of the year is less certain.
The FOMC has raised
interest rates six times since it began the current hiking cycle in December 2015
In March forecasts, the committee was split on whether to lift rates two or three additional times this year amid an improving economic
outlook and rising inflation.
