Sept 29 (Reuters) – Federal Reserve policymakers will press ahead with raising U.S. borrowing costs to fight the corroding effects of too-high inflation, taking in stride both turmoil in global financial markets and early signs their actions are weakening the job market.
“I’m quite comfortable” with raising interest rates to 4%-4.5% this year and 4.5%-5% next year, San Francisco Fed President Mary Daly told reporters after a speech at Boise State University on Thursday, adding she expects that rates will need to stay at that level for all of 2023.
Those ranges encompass what the majority of Daly’s fellow policymakers wrote in their rate path projections published last week, when the Fed lifted interest rates to 3%-3.25% in what is proving to be the most aggressive round of rate hikes since the 1980s.
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The Fed’s steeper-than-expected policy tightening, aimed at bringing down…