Analysis-Financial or price stability? Fed faces calls to pause

Published by
Reuters UK

By Paritosh Bansal and Ira Iosebashvili (Reuters) – With the U.S. and European banking crisis wreaking havoc in global markets, some financial industry executives are calling on the Federal Reserve to pause its monetary policy tightening for now but be ready to resume raising rates later. Investors are currently pricing a 60% probability that the Fed will raise rates by 25 basis points on Wednesday, with the remainder betting on no change. Some industry executives said the central bank should prioritize financial stability now. “Go fast and hard on financial stability; go gradual and slow on p…

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