Amid growing concerns about a recession caused by the US Federal Reserve's sharp hike in interest rates, a senior Fed official has expressed optimism that inflation will be controlled relatively painlessly.



According to foreign media such as Reuters on the 25th (local time), Atlanta Federal Reserve Bank President Rapier Bostic appeared on CBS on the same day to lower inflation to the target of 2% without causing large-scale unemployment as the US economic momentum continues. I maintained the view that it can be done.



"Inflation is too high and we need to do everything we can to bring it down," he said.



He also noted that the job market remains strong growth, "there is a lot of positive momentum. There is some capacity for the US economy to absorb the rate hike action and slow it down in a relatively orderly way."



He also stressed that "the Fed will do everything it can to avoid deep pain (although it will require a slowdown)."



However, Bostik does not have a vote this year in the Federal Open Market Committee (FOMC), which sets interest rates.



Bostik's remarks came amid growing concerns about an economic recession as the Fed raised its benchmark interest rate by 0.75 percentage points three times in a row on the 21st.



While the US CPI and CPI rose from 9.1% in June to 8.3% in August, still high, Fed Chairman Jerome Powell emphasized that economic actors are inevitably suffering from the process of raising the key interest rate to catch inflation.



In addition, the Fed left open the possibility of an additional 1.25 percentage point rate hike at its two remaining FOMC meetings by the end of the year, predicting that economic growth would fall sharply and inflation and unemployment would rise.



Markets are also raising concerns that the Fed is raising rates too aggressively, without sufficient time to review the economic data that emerges after the rate hike.



In addition, the world's central banks are following the US in raising key interest rates, but there are warnings that an interest rate hike without international cooperation could fuel the possibility of an economic crisis, the Wall Street Journal reported.



Inflation is a global problem, and since each country is effectively responding at the individual national level, the combined measures of individual countries could derail the economy more than necessary.



According to the World Bank, the number of countries announcing a key rate hike in July amid high global inflation is the highest since the early 1970s when related counting began.



Thirteen countries raised rates the day after the Fed's rate hike this month, and the rate hikes were also more than usual.



According to a recent report by the World Bank, "If the international impact of monetary and fiscal tightening that occurs very simultaneously (in each country) accumulates, it could cause more damage to growth than would be expected if the policy impacts of individual countries were simply added up. there," he warned.



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