Fed's Cook open to rate hikes if inflation persists

Federal Reserve Governor Lisa Cook indicated a willingness to consider additional interest rate increases if inflation does not show signs of cooling. She stated that the risks to price stability currently outweigh those to the job market, suggesting a hawkish stance on monetary policy. Her comments signal that the Federal Reserve remains vigilant about inflation and is prepared to take further action to bring it under control.

In India, the Reserve Bank of India (RBI) decided to maintain its policy repo rate at 5.25%. This decision reflects a careful balancing act between supporting economic growth and managing persistent inflation pressures, which are being exacerbated by rising oil prices. The central bank also revised its GDP growth estimate upwards to 6.7%, indicating a degree of confidence in the country's economic trajectory despite inflationary concerns.

Separately, the Federal Reserve Banks of Dallas and New York are collaborating on a pilot survey of the private credit market. This initiative is scheduled to commence after the third quarter of the year. The primary objective of this survey is to gather crucial data and insights into the current state of private credit, including aspects like credit availability, prevailing lending standards, and the broader implications for the U.S. economy and the effectiveness of monetary policy. The findings are expected to inform future policy decisions and provide a clearer picture of this increasingly important segment of the financial system.