Mark Carney, the former Bank of England governor, said he expects the US Federal Reserve to raise interest rates again before the end of the year to help curb inflation.
(Bloomberg) — Mark Carney, the former Bank of England governor, said he expects the US Federal Reserve to raise interest rates again before the end of the year to help curb inflation.
“I expect that there will be a bit more tightening by the Fed, probably an additional rate increase this year,” Carney said Monday during an interview on “The David Rubenstein Show: Peer to Peer Conversations.”
- For the full interview with Brookfield’s Mark Carney, please watch “The David Rubenstein Show: Peer to Peer Conversations” on October 18th at 9:00pm in New York.
Carney’s remarks align with what officials from the Federal Reserve have been saying. The central bank recently left the benchmark interest rate unchanged at a target range of 5.25% to 5.5% — a 22-year high. However, 12 of 19 Fed officials anticipate one more rate increase for this year.
Federal Reserve Bank of Cleveland President Loretta Mester said Monday that the central bank will likely need to raise rates once more this year and then hold them at higher levels for some time to get inflation back to its 2% target.
Read More: Fed’s Mester Says One More Rate Hike May Be Needed This Year
Forecasts show that US policymakers overall see fewer cuts in 2024 than previously anticipated, in part due to a stronger labor market.
As for investing, Carney said that while cash is more attractive than it used to be, there is an investment boom that’s just begun in real assets. He pointed to big trends in decarbonization, infrastructure, data and digitalization.
“There are tremendous opportunities in real assets,” he said, adding that there is an “overdue reworking” of the insurance sector.
Carney, who served as governor of the Bank of Canada before moving to the Bank of England, declined to answer a question from Rubenstein about speculation that he may consider a run to be Canada’s next prime minister.
Currently, Carney is chair of Toronto-based Brookfield Asset Management, where he is head of energy transition investing. Additionally, he’s the United Nations Special Envoy for Climate Action and Finance, as well as co-chair of a climate finance group called the Glasgow Finance Alliance for Net Zero.
Carney also has been named chairman of Bloomberg Inc.’s board.
(Adds comment from Fed’s Loretta Mester in fourth paragraph.)
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