Nick Timiraos writes in the Wall Street Journal (gated) that higher savings buffers and lower interest expenses could make the Federal Reserve raise rates higher and keep them there for longer.
- Some officials have argued for slowing the pace of rate rises after this week’s meeting. But the debate over the speed of increases could obscure a more important one around how high rates ultimately rise.
- some economists think it will have to go higher than 4.6%, citing in particular reduced sensitivity of spending to higher interest rates
The hawkish remarks from Mr. T has the USD trading higher in very early time here in Asia:
