Two Fed Officials Hinted More Rate Hikes

JOIN OUR LIVE SESSIONS! Our LIVE session starts when the big institutions and elite traders do before the opening bell. We'll look at real-time dark pool data as the market movers position themselves for the trading day in secret off-market exchanges. [JOIN OUR LIVE TRADING SESSION @ 6am PT / 9am ET]( [Shadow] Hello investor, Even though Fed Reserve Chair Jerome Powell signaled that he supports a pause in rate hikes in the next meeting, two Fed officials said they forecasted more hikes this year. How much? Well, Federal Reserve Bank of St. Louis President James Bullard said yesterday that he would support two more hikes. His Minneapolis colleague Neel Kashkari said if the central bank chose to pause in the next meeting, it shouldn’t mean rate hikes are off the table in the next few meetings. - “I think we’re going to have to grind higher with the policy rate in order to put enough downward pressure on inflation and to return inflation to target in a timely manner,” Bullard said. - “I’m thinking two more moves this year – exactly where those would be this year I don’t know – but I’ve often advocated sooner rather than later,” he said. Federal Reserve Bank of St. Louis President James Bullard (Photo: CNBC) As a result, traders boosted the odds of a rate hike next month to 30% from around 22% before Bullard’s speech. Kashkari said he hasn’t seen the evidence that a tightening in credit conditions from the collapse of three banks have helped cooling down inflation. But of course, there’s a lagging effect. That’s why he was comfortable with the idea of a pause while keeping future rate hikes on the table if inflation remains stubbornly high. - “I think right now it’s a close call, either way, versus raising another time in June or skipping. What’s important to me is not signaling that we’re done,” Kashkari said. - “If we were to skip in June that does not mean we’re done with our tightening cycle, it means to me we’re getting more information. Do we then start raising again in July, potentially?” he said. Atlanta Fed President Raphael Bostic also spoke yesterday, and he supported a pause. He pointed to the lagging factor as the reason why the central bank should pause to analyze the effects of recent rate hikes and tightening credit conditions on the economy. - “Our policy works with a lag. And we’re just at the very beginning of this time when that lag is starting to play out and you’re starting to see tightness emerge,” Bostic said on Monday. “Right now, absent a big change, I think I will be comfortable saying let’s just look and see how things play out.” Buy This “Forever” Stock And Hold For A Decade Today’s Stock Pick: Accenture Plc ([ACN]( Accenture is as solid as any stock pick you can make. It is one of the world's largest IT service companies with IT professionals (based in 50 countries) offering a wide range of services to approximately 7,000 clients across 120 countries. Most of those clients are Fortune 500 and Fortune 1000 companies. (Photo: Alamy) Two words to describe Accenture: steady grower. Between 2016 and 2022, Accenture's annual revenue rose at a compound annual growth rate (CAGR) of 10%. Obviously, it is not a dizzying growth. But it’s all about shareholder returns. 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